<PAGE>
Northern Institutional Funds
MONEY MARKET PORTFOLIOS
NOVEMBER 30, 1998
Annual Report
<PAGE>
Northern Institutional Funds
Money Market Portfolios
- --------------------------------------------------------------------------------
Table of Contents
<TABLE>
<CAPTION>
Page
----
<S> <C>
Management's Discussion of Portfolio Performance........................... 2
Statements of Investments
Investment Abbreviations and Notes....................................... 3
Diversified Assets Portfolio............................................. 4
Government Portfolio..................................................... 8
Government Select Portfolio.............................................. 9
Tax-Exempt Portfolio..................................................... 10
Statements of Assets and Liabilities....................................... 15
Statements of Operations................................................... 16
Statements of Changes in Net Assets........................................ 17
Financial Highlights....................................................... 18
Notes to the Financial Statements.......................................... 22
Report of Independent Auditors............................................. 24
</TABLE>
- --------------------------------------------------------------------------------
1
<PAGE>
Northern Institutional Funds
Money Market Portfolios
- -------------------------------------------------------------------------------
MANAGEMENT'S DISCUSSION OF PORTFOLIO PERFORMANCE
NORTHERN INSTITUTIONAL DIVERSIFIED ASSETS PORTFOLIO
Most of the fiscal year was an exercise in defensive investing, waiting for
the Fed to lower interest rates. The cash markets had anticipated and factored
in these moves even before they occurred.
The Portfolio continued to benefit from a "barbell" maturity structure,
whereby we purchased shorter-term securities for liquidity and longer-term
issues for their yield advantages. We made our longer-term investments when
prices on these securities decreased. The composition of the Portfolio
remained relatively unchanged during the year, with the heaviest concentration
of securities in Tier One commercial paper, where there is the greatest yield
advantage.
For fiscal 1999, we expect our investment decisions to be based on the
assumption that interest rates will continue to decrease.
Providing liquidity, maintaining high credit quality, and offering an
attractive yield remain the primary goals for the Portfolio.
MARY ANN FLYNN
Portfolio Manager
NORTHERN INSTITUTIONAL GOVERNMENT PORTFOLIO
The Portfolio benefited from a "barbell" maturity structure, whereby we
purchased shorter-term securities for liquidity and longer-term securities for
their yield advantages. We made our longer-term investments when prices on
these securities became lower.
Early in the fiscal year, we took advantage of calendar-year-end pressure,
and extended the Portfolio's securities' average life as far as we could under
SEC's regulations. As the pressure abated, we replaced agency discount notes
with repurchase agreements. Now, as we once again are approaching the end of a
calendar year, we are taking advantage of year-end pressure and extending the
Portfolio's maturity.
Providing liquidity, maintaining high credit quality, and offering an
attractive yield remain the primary goals for the Portfolio.
VALERIE J. LOKHORST
Portfolio Manager
NORTHERN INSTITUTIONAL GOVERNMENT SELECT PORTFOLIO
The Portfolio continued to benefit during the fiscal year from a "barbell"
maturity structure. In practicing this strategy, we purchased shorter-term
securities for liquidity and longer-term securities for their yield
advantages. We made our longer-term investments when prices on these
securities represented good value.
We made no significant changes to the Portfolio during the fiscal year. The
Portfolio benefited from year-end pressure experienced late in 1997, which
enabled us to extend the Portfolio's securities' average life as far as SEC
regulations allow. Now, with 1998 drawing to a close, this year-end pressure
has resurfaced, and, in response, we have been lengthening the Portfolio's
maturity.
Providing liquidity, maintaining high credit quality, and offering an
attractive yield remain the primary goals for the Portfolio.
MARY ANN FLYNN AND
VALERIE J. LOKHORST
Portfolio Managers
NORTHERN INSTITUTIONAL TAX-EXEMPT MONEY MARKET PORTFOLIO
The Portfolio offered competitive returns during the fiscal year. Our primary
investment strategy during the year was to try to extend the Portfolio's
securities' average maturities on the belief that the Federal Reserve would
either keep rates stable or lower them. Unfortunately, longer-term securities
didn't offer very attractive yields through most of the year, which made it
difficult to extend the Portfolio's average maturity.
We made no significant changes to the Portfolio's composition during the
fiscal year. The market is technically driven and cyclical. There are certain
times of the year, such as the end of June and early July, tax season, and
year-end, when the market has wide swings in both assets and yields. We have
to anticipate these cycles and be able to manage the resulting volatile
swings. Additionally, the supply of short-term, tax-exempt paper significantly
affects the level of interest rates. This year, the lack of short-term, tax-
exempt paper made it difficult to extend the Portfolio's maturity at
attractive levels.
Going forward, we continue to believe that it would be better to have a
slightly longer average maturity, but we will extend only if the levels make
sense when compared to taxable alternatives.
BRAD SNYDER
Portfolio Manager
Shares of The Northern Institutional Funds are not bank deposits or
obligations of, or guaranteed, endorsed or otherwise supported by The Northern
Trust Company, its parent company, or its affiliates, and are not Federally
insured or guaranteed by the U.S. Government, Federal Deposit Insurance
Corporation, Federal Reserve Board, or any other governmental agency. The
Northern Institutional Money Market Portfolios seek to maintain a net asset
value of $1.00 per share, but there can be no assurance that they will be able
to do so on a continuous basis.
2
<PAGE>
Northern Institutional Funds
Money Market Portfolios
- --------------------------------------------------------------------------------
Statements of Investments
November 30, 1998
Investment Abbreviations and Notes:
AMBAC--American Municipal Bond Assurance Corp.
BAN --Bond Anticipation Note
BTP --Bankers Trust Partnership
Colld.
--Collateralized
CP --Commercial Paper
FGIC --Financial Guaranty Insurance Corp.
FHLB --Federal Home Loan Bank
FRN --Floating Rate Note
FSA --Financial Security Assurance Corp.
GO --General Obligation
Gtd. --Guaranteed
GNMA --Government National Mortgage Association
HDA --Housing Development Authority
HFA --Housing Finance Authority
IDA --Industrial Development Authority
IDR --Industrial Development Revenue
LOC --Letter of Credit
MBIA --Municipal Bond Insurance Association
ML SG--Merrill Lynch/Societe Generale
P-Floats
--Puttable Floating Rate Security
PCR --Pollution Control Revenue
SD --School District
SFM --Single Family Mortgage
Soc Gen
--Societe Generale
STN --Short Term Note
TOB --Tender Option Bond
TRB --Tax Revenue Bond
TRAN --Tax and Revenue Anticipation Note
VRDN --Variable Rate Demand Note
. The percentage shown for each investment category reflects the value of
investments in that category as a percentage of net assets.
. Interest rates represent either the stated coupon rate, annualized yield on
date of purchase for discounted notes, or, for floating rate securities, the
current reset rate.
. Maturity dates represent either the stated date on the security or the next
interest reset date for floating and variable rate securities per SEC rules.
. Amortized cost also represents cost for federal income tax purposes.
. Interest rates are reset daily and interest is payable monthly with respect
to all joint repurchase agreements.
See accompanying notes to financial statements.
3
<PAGE>
Northern Institutional Funds
Money Market Portfolios
- --------------------------------------------------------------------------------
Statements of Investments
November 30, 1998
(All amounts in thousands)
<TABLE>
<CAPTION>
Description
- ------------------------------------------------------
Principal Maturity Amortized
Amount Rate Date Cost
- ------------------------------------------------------
Diversified Assets Portfolio
<C> <C> <S> <C>
AGENCY DISCOUNT NOTE--0.5%
Administration of
Environment and
Housing Programs
Federal Home Loan
Mortgage Corp.
$25,000 4.95% 12/10/98 $ 24,969
- ------------------------------------------------------
TOTAL AGENCY DISCOUNT NOTE $ 24,969
- ------------------------------------------------------
BANK NOTES--2.0%
Domestic Depository Institutions--0.3%
Bank One Milwaukee
$17,000 5.55% 1/29/99 $ 16,999
----------
Foreign Depository Institutions--0.1%
Abbey National PLC
2,500 5.70 6/11/99 2,508
----------
Holding and Other Investment Compa-
nies--1.6%
JP Morgan and Co.,
Inc.
78,000 5.75 3/10/99 78,001
- ------------------------------------------------------
TOTAL BANK NOTES $ 97,508
- ------------------------------------------------------
CERTIFICATES OF DEPOSIT--6.5%
Domestic Depository Institutions--2.6%
Bankers Trust Co.
$16,250 6.01% 12/10/98 $ 16,251
25,000 5.58 1/22/99 24,998
15,000 5.71 7/1/99 14,997
Crestar Bank
20,000 5.59 2/2/99 19,999
Union Bank of
California
47,000 5.65 12/8/98 47,000
----------
123,245
----------
Foreign Depository Institutions--3.9%
Banque Nationale
De Paris, New York
20,000 5.52 2/18/99 19,992
20,000 5.71 3/30/99 19,993
25,000 5.75 4/23/99 24,995
Barclays Bank, New
York
5,000 5.56 2/25/99 4,999
Canadian Imperial
Bank of Commerce,
New York
25,000 5.74 4/28/99 24,989
Societe Generale,
New York
40,000 5.70 1/7/99 40,001
15,000 5.71 3/5/99 14,999
2,000 5.75 4/19/99 2,000
15,000 5.765 4/19/99 14,998
UBS Bank
19,500 5.75 5/7/99 19,551
----------
186,517
- ------------------------------------------------------
TOTAL CERTIFICATES OF DE-
POSIT $ 309,762
- ------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Description
- -----------------------------------------
Principal Maturity Amortized
Amount Rate Date Cost
- -----------------------------------------
<C> <C> <S> <C>
COMMERCIAL PAPER--42.1%
Asset-Backed Securities--18.1%
Altair Funding
Corp.
$10,000 5.40% 1/21/99 $ 9,923
Beta Finance Corp.
16,000 5.10 3/10/99 15,776
6,000 5.10 3/24/99 5,904
Centauri Funding
50,000 5.32 3/8/99 49,283
20,000 5.10 3/25/99 19,677
Concord Minutemen
Capital Co.
36,000 5.40 1/22/99 35,719
Cooperative
Association of
Tractor Dealers,
Series A
2,400 5.23 3/17/99 2,363
Corporate
Receivables Corp.
25,000 5.31 12/7/98 24,978
1,250 5.35 12/9/98 1,248
CPI Funding
20,227 5.07 2/25/99 19,982
29,000 4.93 4/26/99 28,420
Dakota
Certificates
Program
25,000 5.46 12/3/98 24,992
25,000 5.46 12/4/98 24,989
Grayhawk Funding
60,000 5.15 12/18/98 59,854
7,500 5.05 3/16/99 7,389
12,500 5.105 3/16/99 12,314
International
Securitization
Corp.
23,000 5.02 4/26/99 22,532
Kitty Hawk Funding
Corp.
34,000 5.46 2/16/99 33,603
KZH Crescent II
Corp.
3,102 5.55 12/4/98 3,100
KZH Cypress Tree I
Corp.
10,000 5.55 12/4/98 9,995
KZH Holding Corp.
III
2,560 5.55 12/21/98 2,552
MPF, Ltd.
53,000 5.53 2/12/99 52,406
Pooled Account
Receivables Corp.
32,263 5.35 2/12/99 31,913
R.O.S.E., Inc.
44,319 5.25 12/2/98 44,312
SALTS(III) Cayman
Islands Corp.
15,000 5.719 12/18/98 15,000
75,000 5.85 1/25/99 75,000
Sheffield
Receivables Corp.
25,000 5.11 2/12/99 24,741
23,000 5.26 2/26/99 22,708
</TABLE>
See accompanying notes to financial statements.
4
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Description
- -----------------------------------------------------------
Principal Maturity Amortized
Amount Rate Date Cost
- -----------------------------------------------------------
Diversified Assets Portfolio--Continued
Asset-Backed Securities--Continued
<C> <C> <S> <C>
Silver Tower US
Funding
$ 3,600 5.49% 12/10/98 $ 3,595
5,000 5.50 12/22/98 4,984
9,275 5.05 3/18/99 9,136
14,500 5.02 5/18/99 14,160
Thames Asset
Global
Securitization
25,000 5.32 1/8/99 24,860
6,997 5.45 1/14/99 6,950
10,000 5.45 1/15/99 9,932
11,000 5.40 1/26/99 10,908
10,000 5.15 2/16/99 9,890
21,451 5.40 2/16/99 21,203
Trident Capital
Finance, Inc.
25,000 5.50 12/8/98 24,973
14,000 5.472 12/11/98 13,979
12,500 5.30 12/15/98 12,474
Twin Towers, Inc.
22,000 5.40 2/1/99 21,795
--------
869,512
--------
Banking--0.8%
Bankers Trust New
York Corp.
39,500 5.48 1/22/99 39,188
--------
Communications--1.6%
Cincinnati Bell,
Inc.
5,000 5.50 12/1/98 5,000
35,000 5.05 12/4/98 34,985
GTE Corp.
5,000 5.25 12/4/98 4,998
10,000 5.25 12/7/98 9,991
15,000 5.20 12/14/98 14,972
5,000 5.40 1/26/99 4,958
--------
74,904
--------
Computers and Office Machines--2.7%
BTR Dunlop
Finance, Inc.
25,000 5.50 12/7/98 24,977
54,000 5.45 2/18/99 53,354
24,500 5.34 2/23/99 24,195
12,500 5.34 2/25/99 12,340
15,000 5.25 3/8/99 14,788
--------
129,654
--------
Diversified Financial Services--2.7%
Chrysler Financial
Corp.
31,000 5.25 12/7/98 30,973
Ford Motor Credit
Corp.
59,000 5.45 12/1/98 59,000
</TABLE>
<TABLE>
<CAPTION>
Description
- ----------------------------------------
Principal Maturity Amortized
Amount Rate Date Cost
- ----------------------------------------
<C> <C> <S> <C>
General Motors Ac-
ceptance Corp.
$20,000 5.50% 12/2/98 $ 19,997
10,000 5.50 12/3/98 9,997
10,000 5.50 12/9/98 9,988
---------
129,955
---------
Electrical Services--1.2%
Centerior Fuel
Corp. (LOC
Barclays Bank)
35,029 5.20 12/14/98 34,963
CSW Credit, Inc.
10,000 5.25 12/4/98 9,996
15,000 5.37 12/17/98 14,964
---------
59,923
---------
Electronic and Other Electric Compo-
nents--1.7%
General Electric
Capital Corp.
60,000 5.50 12/24/98 59,789
25,000 5.48 2/26/99 24,669
---------
84,458
---------
Food and Kindred Products--2.8%
Cargill Global
Funding, Inc.
34,000 5.45 12/1/98 34,000
Coca Cola
Enterprises, Inc.
50,000 5.50 12/8/98 49,947
9,000 5.51 12/10/98 8,988
Diageo PLC
10,000 5.47 12/4/98 9,995
8,000 5.472 12/11/98 7,988
24,000 5.33 12/11/98 23,964
---------
134,882
---------
Foreign Depository Institutions--5.2%
Abbey National
PLC, North America
30,000 5.35 12/8/98 29,969
90,000 5.458 12/22/98 89,713
Credit Communal de
Belgique
30,000 5.47 12/18/98 29,923
Generale Bank,
Inc.
50,000 5.49 12/1/98 50,000
Societe Generale
North America,
Inc.
30,000 5.475 12/21/98 29,909
Spintab
AB/Swedmortgage
4,000 5.55 12/28/98 3,983
Svenska
Handelsbanken,
Inc.
15,000 5.47 12/17/98 14,964
---------
248,461
---------
Industrial Instruments--0.7%
Johnson Controls,
Inc.
15,000 5.30 2/23/99 14,815
Xerox Credit Corp.
17,500 5.32 3/5/99 17,257
---------
32,072
---------
</TABLE>
See accompanying notes to financial statements.
5
<PAGE>
Northern Institutional Funds
Money Market Portfolios
- --------------------------------------------------------------------------------
Statements of Investments
November 30, 1998
(All amounts in thousands)
<TABLE>
<CAPTION>
Description
- ------------------------------------------
Principal Maturity Amortized
Amount Rate Date Cost
- ------------------------------------------
<C> <C> <S> <C>
Insurance--0.9%
Aetna Service Co.
$12,000 5.28% 1/22/99 $ 11,907
18,000 5.20 2/19/99 17,790
Torchmark, Inc.
15,000 5.30 1/19/99 14,892
-----------
44,589
-----------
Municipalities--0.2%
Texas Municipal
Power Agency,
Series 1997
9,300 5.37 12/10/98 9,300
-----------
Nondepository Business Credit Institu-
tions--2.6%
FBA Properties,
Inc. (Nations
Bank, Georgia LOC)
5,575 5.45 12/30/98 5,551
Finova Capital
Corp.
5,000 5.35 12/15/98 4,990
50,000 5.40 1/14/99 49,670
27,500 5.40 1/19/99 27,298
5,000 5.28 2/17/99 4,943
18,000 5.30 2/19/99 17,788
15,000 5.18 3/12/99 14,782
-----------
125,022
-----------
Nondepository Personal Credit Institu-
tions--0.3%
Cendant Residen-
tial Mortgage
Trust
12,500 5.43 12/11/98 12,481
-----------
Petroleum Refining and Related Indus-
tries--0.3%
Koch Industries,
Inc.
12,500 5.43 12/4/98 12,494
-----------
Toys, Games and Hobbies--0.3%
Mattel, Inc.
15,340 5.43 12/4/98 15,333
- ------------------------------------------
TOTAL COMMERCIAL PAPER $ 2,022,228
- ------------------------------------------
CORPORATE NOTES--14.0%
Asset Backed Securities--
4.6%
Beta Finance
60,000 5.64 2/4/99 60,000
Liberty Light FRN
25,000 5.374 10/8/99 24,978
Restructured Asset
Certificates with
Enhanced Returns,
Series 1998-MM-B-
11
33,000 5.69 12/28/98 33,000
Salts(II) Cayman
Islands Corp., P-
Floats
20,000 5.738 12/18/98 20,000
Syndicated Loan
Funding Trust,
Series 1998-7
50,000 5.777 12/15/99 50,000
</TABLE>
<TABLE>
<CAPTION>
Description
- -----------------------------------------
Principal Maturity Amortized
Amount Rate Date Cost
- -----------------------------------------
<C> <C> <S> <C>
Triangle Funding,
Ltd., 1998-1A 1
PP, FRN
$30,000 5.353% 10/15/99 $ 30,000
----------
217,978
----------
Broker--0.5%
Morgan Stanley
Trust Certificates
1996-2
24,832 5.105 12/23/98 24,832
----------
Electronic and Other Elec-
trical Components--0.7%
Heller Financial,
Inc. FRN
35,000 5.64 11/15/99 35,065
----------
Insurance Carriers--2.0%
Transamerica
Financial Corp.
FRN
25,000 5.45 10/22/99 25,000
United Health Care
Corp.
70,000 5.65 12/1/99 70,000
----------
95,000
----------
Municipal Investments--1.0%
Crozer Keystone
Health System,
VRDN
7,600 5.69 12/2/98 7,600
Metal Forming &
Coining Corp.
Project (National
City Bank--LOC)
9,870 5.03 12/7/98 9,870
Public Service
Electric and Gas
Co.
1st and Refunding
Mortgage Bond
Series YY
30,000 5.85 5/1/99 30,000
----------
47,470
----------
Nondepository Personal
Credit Institutions--3.1%
Associates Corp.
P-Floats, FRN
50,000 5.465 4/5/09 50,000
Beneficial Corp.
FRN
5,000 5.57 9/23/99 5,000
CIT Group Holdings
57,500 5.08 8/30/99 57,461
Countrywide Home
Loan FRN
25,000 5.275 8/4/99 24,992
Household Finance
Co. FRN
13,000 5.444 1/14/99 13,000
----------
150,453
----------
Railroad Transportation--
0.8%
Communaute Urbaine
de Lille
Custodial Tax
Receipts STN 98-8
37,260 5.40 4/1/99 37,260
----------
Transportation Equipment--
1.3%
Chrysler Financial
Corp.
5,000 6.28 6/22/99 5,030
GE Engine
Receivables 1995-1
Trust FRN
10,394 5.264 12/7/98 10,394
</TABLE>
See accompanying notes to financial statements.
6
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Description
- -----------------------------------------------------------
Principal Maturity Amortized
Amount Rate Date Cost
- -----------------------------------------------------------
Diversified Assets Portfolio--Continued
<C> <C> <S> <C>
Transportation Equipment--Con-
tinued
GE Engine
Receivables 1996-1
Trust, FRN
$ 34,732 5.264% 12/7/98 $ 34,732
General Motors
Acceptance Corp.,
FRN
12,500 4.965 6/11/99 12,495
----------
62,651
- -----------------------------------------------------------
TOTAL CORPORATE NOTES $ 670,709
- -----------------------------------------------------------
EURODOLLAR TIME DEPOSITS--
10.1%
Banco Central
Hispanoamericano,
Grand Cayman Islands
$ 50,000 5.00% 12/1/98 $ 50,000
Compagnie Financiere
de CIC, Grand Cayman
Islands
35,000 5.50 12/1/98 35,000
Deutsche Bank, Grand
Cayman Islands
160,000 5.44 12/1/98 160,000
Halifax Building
Society, Halifax
160,000 5.50 12/1/98 160,000
KBC BANK, Grand
Cayman Islands
38,807 5.25 12/1/98 38,807
Monte Dei Paschi di
Siena, Grand Cayman
Islands
40,000 5.44 12/1/98 40,000
- -----------------------------------------------------------
TOTAL EURODOLLAR TIME DEPOSITS $ 483,807
- -----------------------------------------------------------
GUARANTEED INVESTMENT
CONTRACTS--4.6%
General American
Life Insurance Co.,
FRN
$ 75,000 5.24% 12/7/98 $ 75,000
25,000 5.24 12/30/98 25,000
Integrity Life
Insurance Co., FRN
30,000 5.89 12/7/98 30,000
Transamerica Life
Insurance and
Annuity Co., FRN
30,000 5.344 12/1/98 30,000
25,000 5.327 12/12/98 25,000
35,000 5.334 12/30/98 35,000
- -----------------------------------------------------------
TOTAL GUARANTEED INVESTMENT
CONTRACTS $ 220,000
- -----------------------------------------------------------
MUNICIPAL INVESTMENTS--7.7%
City of Minneapolis-
St. Paul (Minnesota)
Metro Airport GO
Bond
$ 28,930 5.70% 12/1/98 $ 28,930
City of Seattle
(Washington) Ltd. GO
Bond Series C
46,525 4.75 12/7/98 46,525
County of Kern
(California) Pension
Obligation
18,000 5.339 12/1/98 18,000
</TABLE>
<TABLE>
<CAPTION>
Description
- --------------------------------------
Principal Maturity Amortized
Amount Rate Date Cost
- --------------------------------------
<C> <C> <S> <C>
County of Los
Angeles
(California)
Pension
Obligation
$ 40,000 5.07% 12/7/98 $ 40,000
County of
Sonoma
(California)
Pension
Obligation
22,800 5.239 12/1/98 22,800
Health
Insurance Plan
of Greater New
York VRDN,
Series 1990 B-1
17,500 5.09 7/1/16 17,500
State of New
Jersey Economic
Development
Authority
25,000 5.636 10/1/21 25,000
State of
Virginia
Housing
Development
Authority
171,105 4.75 12/7/98 171,105
- --------------------------------------
TOTAL MUNICIPAL
INVESTMENTS $ 369,860
- --------------------------------------
U.S. GOVERNMENT
OBLIGATIONS--1.0%
U.S. Treasury Bills
$ 15,000 4.39% 4/1/99 $ 14,779
10,000 4.17 4/8/99 9,852
25,000 4.365 4/29/99 24,548
- --------------------------------------
TOTAL U.S. GOVERNMENT
OBLIGATIONS $ 49,179
- --------------------------------------
REPURCHASE AGREEMENTS--
1.0%
Joint Repurchase
Agreement--1.0%
Warburg Dillon
Read LLC, Dated
6/25/98 (U.S.
Government
Securities
Colld.) Accrued
Interest $116
$ 50,000 5.25% 12/1/98 $ 50,000
- --------------------------------------
TOTAL REPURCHASE
AGREEMENTS $ 50,000
- --------------------------------------
TOTAL INVESTMENTS--89.5% $4,298,022
- --------------------------------------
Other assets, less
liabilities--10.5% 503,868
- --------------------------------------
NET ASSETS--100.0% $4,801,890
- --------------------------------------
- --------------------------------------
</TABLE>
See accompanying notes to financial statements.
7
<PAGE>
Northern Institutional Funds
Money Market Portfolios
- --------------------------------------------------------------------------------
Statements of Investments
November 30, 1998
(All amounts in thousands)
<TABLE>
<CAPTION>
Description
- ----------------------------------------------------------------------
Principal Maturity Amortized
Amount Rate Date Cost
- ----------------------------------------------------------------------
Government Portfolio
<C> <S> <C> <C>
U.S. GOVERNMENT AGENCIES--51.6%
Fannie Mae Discount Notes--18.0%
$ 26,175 5.368% 12/29/98 $ 26,066
78,000 5.07 2/25/99 77,055
78,000 4.98 3/26/99 76,759
65,000 4.91 4/20/99 63,759
55,000 4.88 4/29/99 53,889
--------
297,528
--------
Fannie Mae Medium Term Notes--4.5%
46,000 5.38 2/9/99 45,989
28,000 5.49 8/3/99 27,979
--------
73,968
--------
Fannie Mae Medium Term Note FRN--3.9%
65,000 5.025 12/1/98 64,966
--------
FHLB Discount Note--3.3%
54,214 5.15 12/1/98 54,214
--------
FHLB Medium Term Notes--8.1%
20,800 5.52 3/23/99 20,795
13,000 5.50 3/26/99 12,996
39,000 5.527 6/10/99 38,969
42,000 5.54 7/13/99 41,987
19,000 5.536 7/15/99 18,991
--------
133,738
--------
Freddie Mac Discount Note--12.3%
19,000 5.071 2/26/99 18,767
78,000 5.06 2/26/99 77,046
80,000 4.90 3/12/99 78,900
29,200 4.91 4/9/99 28,686
--------
203,399
--------
SLM Holding Corp. Medium Term Notes--1.5%
26,000 5.40 2/10/99 25,995
- ----------------------------------------------------------------------
TOTAL U.S. GOVERNMENT AGENCIES $853,808
- ----------------------------------------------------------------------
REPURCHASE AGREEMENTS--48.4%
Repurchase Agreements--45.4%
ABN-Amro Securities, Inc., Dated 11/30/98,
Repurchase Price $200,030
(U.S. Government Securities Colld.)
$200,000 5.45% 12/1/98 $200,000
Bear Stearns Security Corp, Dated 11/30/98,
Repurchase Price $350,054
(U.S. Government Securities Colld.)
350,000 5.52 12/1/98 350,000
</TABLE>
<TABLE>
<CAPTION>
Description
- -------------------------------------------------------
Maturity
Principal Amount Rate Date Amortized Cost
- -------------------------------------------------------
<S> <C> <C> <C>
</TABLE>
<TABLE>
<S> <C> <C> <C>
J.P. Morgan Securities, Inc., Dated 11/30/98,
Repurchase Price $200,028
(U.S. Government Securities Colld.)
$200,000 5.35% 12/1/98 $ 200,000
----------
750,000
----------
Joint Repurchase Agreement--3.0%
Warburg Dillon Reed LLC, Dated 6/25/98,
(U.S. Government Securities Colld.) Accrued
Interest $128
$ 50,000 5.25% 12/1/98 $ 50,000
- -------------------------------------------------------------------
TOTAL REPURCHASE AGREEMENTS $ 800,000
- -------------------------------------------------------------------
TOTAL INVESTMENTS--100.0% $1,653,808
- -------------------------------------------------------------------
Liabilities, less other assets--0.0% (938)
- -------------------------------------------------------------------
NET ASSETS--100.0% $1,652,870
- -------------------------------------------------------------------
- -------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
8
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Description
- -----------------------------------------------------
Principal Maturity Amortized
Amount Rate Date Cost
- -----------------------------------------------------
Government Select Portfolio
<C> <S> <C> <C>
U.S. GOVERNMENT AGENCIES--100.0%
Federal Farm Credit Bank--0.7%
$ 12,000 5.70% 12/1/98 $ 12,000
----------
FHLB--9.0%
21,000 5.435 2/2/99 20,994
22,750 5.52 3/23/99 22,745
14,000 5.50 3/26/99 13,996
13,000 5.61 4/8/99 12,996
25,000 5.63 5/5/99 24,988
42,000 5.527 6/10/99 41,965
15,000 5.536 7/15/99 14,993
----------
152,677
----------
FHLB Discount Notes--89.0%
430,435 5.151 12/1/98 430,435
11,905 4.777 12/4/98 11,900
162,000 4.94 1/29/99 160,704
147,000 4.941 1/29/99 145,824
81,200 4.951 1/29/99 80,549
36,865 4.982 1/29/99 36,568
208,200 5.099 2/12/99 206,074
218,000 4.961 2/17/99 215,686
51,000 5.043 2/17/99 50,450
52,000 5.006 2/24/99 51,393
123,000 4.94 5/12/99 120,332
----------
1,509,915
----------
SLM Holding Corp.--1.3%
22,000 5.74 12/17/98 21,999
- -----------------------------------------------------
TOTAL U.S. GOVERNMENT AGENCIES $1,696,591
- -----------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Description
- ----------------------------------------
Maturity Amortized
Shares Rate Date Cost
- ----------------------------------------
<C> <S> <C> <C>
OTHER INVESTMENT--0.0%
</TABLE>
<TABLE>
<S> <C> <C> <C>
Dreyfus Treasury Prime Cash
Management,
Class A
1 -- -- $ 1
- ----------------------------------------
TOTAL OTHER INVEST-
MENT $ 1
- ----------------------------------------
TOTAL INVESTMENTS--
100.0% $1,696,592
- ----------------------------------------
Liabilities, less
other assets--0.0% (1,615)
- ----------------------------------------
NET ASSETS--100.0% $1,694,977
- ----------------------------------------
- ----------------------------------------
</TABLE>
See accompanying notes to financial statements.
9
<PAGE>
Northern Institutional Funds
Money Market Portfolios
- --------------------------------------------------------------------------------
Statements of Investments
November 30, 1998
(All amounts in thousands)
<TABLE>
<CAPTION>
Description
- ---------------------------------------------------------------------------------------------------------
Principal Maturity Amortized
Amount Rate Date Cost
- ---------------------------------------------------------------------------------------------------------
Tax-Exempt Portfolio
MUNICIPAL INVESTMENTS--94.2%
Alabama--1.7%
Greenville City IDR VRDN,
Series 1992, Allied-Signal,
Inc. Project (Allied-Signal,
Inc. Gtd.)
<S> <C> <C> <C>
$ 1,350 3.30% 12/2/98 $ 1,350
Jefferson County Sewer Revenue
VRDN, Series A (FGIC Insured)
5,050 3.45 12/1/98 5,050
McIntosh IDB Environmental
Improvement Revenue VRDN,
Series D (CIBA Specialty
Chemical Corp. Gtd.)
4,300 3.25 12/1/98 4,300
Mobile PCR Revenue VRDN, Series
1994A, Alabama Power Co.
Project (Alabama Power Co.
Gtd.)
2,200 3.30 12/1/98 2,200
--------
12,900
--------
Alaska--1.0%
Alaska Housing Finance Corp.
VRDN, Series 1994 PT-37,
Merrill P-Floats (Banque
National Paris LOC)
7,170 3.43 12/3/98 7,170
--------
California--3.0%
California State GO VRDN,
Series 1997H, Bank of America
(U.S. Government Securities
Colld.)
200 3.23 12/7/98 200
California Statewide Community
Development Authority
TRAN VRDN, Series 1998, LB
FR/RI-A23 Trust Receipts
(California Statewide
Community Development
Authority Insured)
5,000 3.30 12/8/98 5,000
Irvine Ranch Consolidated Water
District VRDN,
Series 1993 B, Districts 2,
102, 103, & 206
(Toronto Dominion Bank LOC)
9,550 3.20 12/1/98 9,550
San Marcos Public Facilities
Authority Revenue VRDN, Series
1989 B BTP-188, Civic Center
Project
(U.S. Government Securities
Colld.)
7,961 3.60 3/25/99 7,961
--------
22,711
--------
Florida--3.7%
Broward County HFA Revenue
VRDN, Sanctuary Park
Apartments Multifamily Project
(PNC LOC)
4,600 3.45 12/4/98 4,600
Florida State Board of
Education Capital Outlay GO
VRDN, Series 1998-9, ABN-Amro
MuniTops (FSA Insured)
3,500 3.43 12/3/98 3,500
Florida State Board of
Education GO, Series 1989A,
Eagle Trust 96C0915 (U.S.
Government Securities Colld.)
5,205 3.80 12/1/98 5,205
Florida State Board of
Education Public Education
Capital VRDN, Series 1991-B
BTP-223 (U.S. Government
Securities Colld.)
4,000 3.65 12/3/98 4,000
Florida State Board of
Education VRDN, Series 1993E,
Eagle Trust 940901
5,500 3.28 12/3/98 5,500
</TABLE>
<TABLE>
<CAPTION>
Description
- ---------------------------------------------------------------------------------------------------------
Principal Maturity Amortized
Amount Rate Date Cost
- ---------------------------------------------------------------------------------------------------------
Orange County HFA VRDN,
Citicorp Eagle Trust,
Series 1987-A (GNMA Securities
Colld.)
<S> <C> <C> <C>
$ 4,660 3.23% 12/2/98 $ 4,660
--------
27,465
--------
Georgia--8.0%
DeKalb County Development
Authority PCR VRDN, Series
1987, General Motors Corp.
Project (General Motors Corp.
Gtd.)
4,200 3.25 12/2/98 4,200
Fulton County Development
Authority IDR,
Citicorp Eagle Trust 981001
11,000 3.10 8/2/99 11,000
Fulton County Development
Authority IDR VRDN, General
Motors Corp. Project (General
Motors Corp. Gtd.)
2,100 3.25 2/2/98 2,100
Georgia State GO TOB, Series
1993 F BTP-82A
9,900 3.35 3/4/99 9,900
Georgia State GO VRDN, Series
1994 D BTP-100
6,035 3.35 3/4/99 6,035
Georgia State Unlimited GO
VRDN, P-Floats PA-246
10,200 3.30 12/3/98 10,200
Georgia State Unlimited GO
VRDN, P-Floats PA-248
7,340 3.30 12/3/98 7,340
Metro Atlanta Rapid Transit
Authority Sales Tax Revenue
VRDN, Series A-MTC#16, BOCM
Muni Trust Certified (MBIA
Insured)
8,000 3.30 12/7/98 8,000
Municipal Gas Authority Gas Revenue VRDN, Series B
(Wachovia Bank NA LOC)
1,300 3.05 12/7/98 1,300
--------
60,075
--------
Hawaii--2.1%
Hawaii State GO VRDN, Series 5
(FGIC Insured)
12,620 3.63 12/3/98 12,620
Hawaii Department of Budget &
Finance Special Purpose IDR,
Kaiser Permanente Project
(Kaiser Permanente Gtd.)
3,000 3.80 3/1/99 3,000
--------
15,620
--------
Idaho--0.5%
Idaho Health Facilities
Authority Hospital Revenue
VRDN, Series 1995, St. Luke's
Medical Center Project
(Credit Suisse First Boston
LOC)
3,700 3.30 12/1/98 3,700
--------
Illinois--11.4%
Chicago Board of Education
VRDN, BTP-239
(AMBAC Insured)
9,320 3.60 12/2/98 9,320
Chicago GO Refunding GO VRDN,
Series 1998 M,
Bank of America Partnership
(FGIC Insured)
5,000 3.70 8/4/99 5,000
Chicago GO VRDN, Series 1997-
SSP-7, Building Acquisition
Certificates (FSA Insured)
8,300 3.35 12/2/98 8,300
</TABLE>
See accompanying notes to financial statements.
10
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Description
- ---------------------------------------------------------------------------------------------------------
Principal Maturity Amortized
Amount Rate Date Cost
- ---------------------------------------------------------------------------------------------------------
Tax-Exempt Portfolio--Continued
Chicago O'Hare Airport Revenue
VRDN, Series 1983-D, AMR,
Inc. Project (Royal Bank of
Canada LOC)
<S> <C> <C> <C>
$ 1,100 3.30% 12/1/98 $ 1,100
DuPage Water Commission
Water/Sewer VRDN
8,400 3.26 12/3/98 8,400
Illinois Development Finance
Authority PCR VRDN,
Series 1994, UNO-VEN Co.
Project (First Chicago NBD
Bank LOC)
2,200 3.15 12/1/98 2,200
Illinois Education Facility
Authority VRDN, Series 1985,
University of Chicago
4,900 3.23 12/3/98 4,900
Illinois Health Facilities
Authority VRDN, Series 1990,
Gottlieb Health Resources,
Inc. (Harris Trust and
Savings Bank LOC)
2,000 3.15 12/2/98 2,000
Illinois Health Facilities
Authority VRDN, Series E,
Franciscan Eldercare (LaSalle
National Bank LOC)
2,500 3.20 12/2/98 2,500
Illinois Sales TRB, Series K
(U.S. Government Securities
Colld.)
1,000 7.00 6/15/99 1,035
Illinois State GO VRDN, Series 1998 PCR-10,
Citibank TOB (FSA Insured)
5,000 3.28 12/7/98 5,000
Illinois State GO VRDN, Series
38
12,885 3.63 12/3/98 12,885
Illinois State GO VRDN, Series
39
12,075 3.63 12/3/98 12,075
Metropolitan Pier & Exposition
Authority Dedicated Sales
TRB, BTP-230 A (U.S.
Government Securities Colld.)
6,000 3.60 12/7/98 6,000
Naperville City IDR VRDN,
General Motors Corp. Project
(General Motors Corp. Gtd.)
1,480 3.25 12/2/98 1,480
Peoria IDR VRDN, Series 1997, Peoria Production Shop
Project (Bank One LOC)
2,905 3.30 12/3/98 2,905
--------
85,100
--------
Indiana--3.6%
Gary Environmental Improvement
PCR, U.S. Steel Corp. Project
(Bank of New York LOC)
3,000 3.35 1/22/99 3,000
Indiana Bond Bank Operating
Municipal Notes,
Series 1998 A-2, Advanced
Funding Program
7,425 4.00 1/20/99 7,429
Indiana Development Finance
Authority IDR VRDN,
Series 1997, Bayer Corp.
Project (Bayer Corp. Gtd.)
1,300 3.35 12/1/98 1,300
Indiana Development Finance
Authority VRDN,
Series 1997, Culver
Educational Foundation
Project (Chase Manhattan Bank
LOC)
2,000 3.15 12/2/98 2,000
</TABLE>
<TABLE>
<CAPTION>
Description
- ---------------------------------------------------------------------------------------------------------
Principal Maturity Amortized
Amount Rate Date Cost
- ---------------------------------------------------------------------------------------------------------
Indiana State Toll Road
Commission VRDN, Series PA-
253 (U.S. Government
Securities Colld.)
<S> <C> <C> <C>
$ 3,900 3.30% 12/3/98 $ 3,900
Indiana Transportation
Authority Highway Revenue
VRDN, Series 1998A, Citicorp
Eagle Trust 981402
7,750 3.10 8/2/99 7,750
Jasper County PCR CP, Series
1988D,
Northern Indiana Public
Service Project
(Northern Indiana Public
Service Gtd.)
2,000 3.30 1/22/99 2,000
--------
27,379
--------
Iowa--2.2%
Council Bluffs City PCR
Revenue VRDN, Series 1995,
Iowa-Illinois Gas and
Electric Project
(MidAmerican Energy Co. Gtd.)
6,600 3.25 12/2/98 6,600
Iowa Finance Authority SFM
Revenue VRDN,
Series 1997A
6,085 3.43 12/1/98 6,085
Iowa Student Loan Liquidity
Student Loan Revenue
3,500 3.10 12/1/98 3,500
--------
16,185
--------
Kansas--1.2%
LaCygne City Environmental Revenue Refunding VRDN,
Series 1994, Kansas City Power & Light Project
(Kansas City Power & Light Gtd.)
2,882 3.30 12/2/98 2,882
Lawrence City GO Temporary Notes, Series 1998-1
6,355 3.79 6/1/99 6,355
--------
9,237
--------
Kentucky--1.4%
Danville City Lease Revenue
CP, Municipal Pooled
Lease Program (PNC Bank LOC)
3,000 3.25 1/12/99 3,000
Mayfield City Lease Revenue
VRDN, Series 1996, Kentucky
League of Cities Pooled
Project
(PNC Bank LOC)
7,200 3.25 12/2/98 7,200
--------
10,200
--------
Louisiana--1.5%
Greater Baton Rouge Port
Commission PCR Bonds,
Series 1983-A, Dow Chemical
Co. Project
(Dow Chemical Co. Gtd.)
5,035 3.95 12/15/98 5,035
Huntington City IDR PCR VRDN,
Allied-Signal, Inc. Project
(Allied-Signal, Inc. Gtd.)
1,900 3.30 12/2/98 1,900
Louisiana Public Facilities
Authority PCR VRDN,
Series 1992, Allied-Signal,
Inc. Project
(Allied-Signal, Inc. Gtd.)
4,515 3.30 12/2/98 4,515
--------
11,450
--------
</TABLE>
See accompanying notes to financial statements.
11
<PAGE>
Northern Institutional Funds
Money Market Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
November 30, 1998
(All amounts in thousands, except shares)
<TABLE>
<CAPTION>
Description
- -----------------------------------------------------------------------------------------------------
Principal Maturity Amortized
Amount Rate Date Cost
- -----------------------------------------------------------------------------------------------------
MAINE--1.0%
Maine State GO Municipal
General Purpose Bond
<S> <C> <C> <C>
$ 4,215 4.50% 6/15/99 $ 4,232
Maine State GO Municipal
Highway Bond
3,000 4.50 6/15/99 3,012
--------
7,244
--------
MARYLAND--0.9%
Maryland State Community
Development Administration SFM
Revenue, Series 1993 PT-12,
Merrill P-Floats (Maryland
Community Development
Authority Gtd.)
6,399 3.43 12/1/98 6,399
Maryland State Economic
Development Authority Pooled
Revenue VRDN, Series 1995
(NationsBank LOC)
100 3.20 12/3/98 100
--------
6,499
--------
MASSACHUSETTS--1.7%
Gloucester County Renewal BAN
5,098 4.00 8/5/99 5,109
Massachusetts Bay
Transportation Authority GO
Notes,
Series 1998 A
8,000 4.25 2/26/99 8,012
--------
13,121
--------
MINNESOTA--1.4%
East Grand Forks Independent
School District 595 GO,
Minnesota School District
Credit Enhancement Program
2,000 3.90 6/30/99 2,003
Minnesota HFA SFM VRDN, Series
1998-F
8,500 3.65 8/9/99 8,500
--------
10,503
--------
MISSOURI--0.6%
Missouri Development Finance
Board Infrastructure Revenue
VRDN, Series 1997B, Science
City at Union Station
(Canadian Imperial Bank of
Commerce LOC)
1,300 3.55 12/1/98 1,300
St. Louis County IDA Hospital
VRDN, Series 1996-B,
Friendship Village West County
Project (LaSalle National Bank
LOC)
3,270 3.20 12/30/98 3,270
--------
4,570
--------
MONTANA--0.1%
Forsyth City, Rosebud County
PCR VRDN, Series 1988,
Pacificorp Project (Rabobank
Group LOC)
1,000 3.75 12/1/98 1,000
--------
NEVADA--2.2%
Clark County School District GO
VRDN (FSA Insured)
10,000 3.33 12/3/98 10,000
Nevada State Municipal Bond
Bank GO VRDN, Series 1997
SGB31 (FGIC Insured)
6,650 3.33 12/3/98 6,650
--------
16,650
--------
</TABLE>
<TABLE>
<CAPTION>
Description
- -----------------------------------------------------------------------------------------------------
Principal Maturity Amortized
Amount Rate Date Cost
- -----------------------------------------------------------------------------------------------------
NEW YORK--2.3%
New York City GO VRDN,
Subordinated Series 1993 E-3
(Morgan Guaranty Trust Co.
LOC)
<S> <C> <C> <C>
$ 300 3.20% 12/1/98 $ 300
New York City Municipal Water
Finance Authority VRDN (MBIA
Insured)
3,800 3.28 12/2/98 3,800
New York State Environmental
Facility Corp. PCR Bond, Eagle
Trust (FSA Insured)
10,000 3.40 4/1/99 10,000
New York State Environmental
Facility Corp. Water PCR Bond
(FSA Insured)
2,000 3.23 12/3/98 2,000
Pooled Puttable VRDN P-Floats,
Bankers Trust, Series PPT2
1,215 3.53 12/3/98 1,215
--------
17,315
--------
NORTH CAROLINA--1.2%
Buncombe County PCR IDR VRDN,
Series 1996,
Cooper Industries, Inc.
Project (Cooper Industries,
Inc Gtd.)
3,200 3.30 12/2/98 3,200
Persons County Industrial
Facilities and PCR VRDN,
Series 1992A, Carolina Power &
Light Project (Carolina Power
& Light Gtd.)
5,500 3.25 12/1/98 5,500
--------
8,700
--------
OHIO--4.2%
Greystone Revenue Senior VRDN,
Series Trust 1998-1, (Credit
Suisse First Boston)
14,500 3.58 12/3/98 14,500
Ohio Air Quality Facilities
Revenue Bond,
Series 1988A, Ohio Edison Co.
Project
(Toronto Dominion Bank LOC)
4,000 3.65 2/1/99 4,000
Ohio State Higher Education
Capital Facilities VRDN,
Series 1994 A, BTP-69 (AMBAC
Insured)
8,545 3.65 12/3/98 8,545
Ohio State Turnpike Commission
VRDN, Series A
(FGIC Insured)
2,000 3.63 12/3/98 2,000
Red Roof Inns Mortgage Bond
Trust VRDN
(National City Bank LOC)
2,714 3.33 12/15/98 2,714
--------
31,759
--------
OREGON--0.7%
Portland City Water/Sewer
System VRDN, Series A
(FGIC Insured)
5,365 3.30 12/4/98 5,365
--------
PENNSYLVANIA--5.0%
Allegheny County Environment
Improvement
IDA Revenue CP, Series 1987
USX Corp.
Project (Commerzbank LOC)
4,000 3.35 1/22/99 4,000
</TABLE>
See accompanying notes to financial statements.
12
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Description
- -----------------------------------------------------------------------------------------------------
Principal Maturity Amortized
Amount Rate Date Cost
- -----------------------------------------------------------------------------------------------------
TAX-EXEMPT PORTFOLIO--CONTINUED
Allegheny County Hospital
Development Authority Revenue
VRDN, Series A, Presbyterian
Health Center
(MBIA Insured)
<S> <C> <C> <C>
2,900 3.30% 12/3/98 $ 2,900
Allegheny County Hospital
Development Authority
Revenue VRDN, Series B-1,
Presbyterian
University Hospital (NBD Bank
LOC)
$ 4,900 3.30 12/4/98 4,900
Pennsylvania Turnpike
Commission Revenue VRDN,
Series 1998-Q
4,100 3.35 12/1/98 4,100
Philadelphia Hospital and
Higher Education Facilities
Authority VRDN, Series A,
Children's Hospital Project
6,450 3.30 12/1/98 6,450
Philadelphia School District
TRAN, Series 1998/99 A
(First Union National Bank
LOC)
7,000 4.25 6/30/99 7,024
Philadelphia TRAN, Series
1998/99 A
6,000 4.25 6/30/99 6,021
Warren County Hospital
Authority VRDN, Series 1994 B,
Warren General Hospital
Project (PNC Bank LOC)
1,650 3.30 12/3/98 1,650
-------
37,045
-------
SOUTH CAROLINA--2.5%
Lexington County Pollution
Control Finance Authority
IDR VRDN, Series 1992A,
Allied-Signal, Inc. Project
(Allied-Signal, Inc. Gtd.)
1,880 3.30 12/2/98 1,880
Lexington County Revenue IDR
VRDN, Series 1992,
Allied-Signal, Inc. Project
(Allied-Signal, Inc. Gtd.)
800 3.30 12/2/98 800
Piedmont Municipal Power Agency
Revenue VRDN
(MBIA Insured)
5,000 3.70 12/1/98 5,000
Public Service Authority Santee
Cooper VRDN,
Series 1998A BTP-318
10,670 3.35 12/3/98 10,670
-------
18,350
-------
SOUTH DAKOTA--1.2%
South Dakota HDA Homeownership
Mortgage Housing VRDN, Series
1996 PT-73-A, Merrill P-Floats
8,945 3.30 12/3/98 8,945
-------
TENNESSEE--1.2%
Shelby County GO VRDN, Series B
BTP-216
4,000 3.17 6/8/99 4,000
Series B BTP-263
5,000 3.60 12/3/98 5,000
-------
9,000
-------
TEXAS--10.7%
Austin City School District
Building and Refunding VRDN,
Series ML/SG-68 (PSF of Texas
Gtd.)
4,900 3.30 12/3/98 4,900
</TABLE>
<TABLE>
<CAPTION>
Description
- -----------------------------------------------------------------------------------------------------
Principal Maturity Amortized
Amount Rate Date Cost
- -----------------------------------------------------------------------------------------------------
Bastrop City Independent School
District GO VRDN,
Series 1997 SGB 37 (PSF of
Texas Gtd.)
<S> <C> <C> <C>
$ 6,870 3.63% 12/7/98 $ 6,870
Denton City Independent School
District GO Bond, Series B
(PSF of Texas Gtd.)
6,000 3.65 8/15/99 6,000
Grand Prairie Housing Finance
Corp. VRDN, Series 1985,
Lincoln Windcliff Project
(General Electric Corp. Gtd.)
900 3.20 12/2/98 900
Harris County GO VRDN, Series
19, Toll Road Unlimited
Subordinate Lien CR138
11,880 3.23 12/3/98 11,880
Harris County Tax Revenue
Receipts, SAK-21
7,910 3.40 12/2/98 7,910
Harris County Health Facility
Development Corp. VRDN, Series
1994, Methodist Hospital
2,300 3.35 12/1/98 2,300
Harris County Toll Road
Unlimited Tax Revenue VRDN,
Series 1994 A, Citicorp Eagle
Trust 954302
6,420 3.28 12/3/98 6,420
Hurst Euless Bedford
Independent School District
GO VRDN, PT-1050 (PSF of Texas
Gtd.)
4,000 3.30 12/3/98 4,000
Pearland Independent School
District GO VRDN,
ML/SG Trust Receipts SG-106
(PSF of Texas Gtd.)
4,000 3.30 12/3/98 4,000
San Antonio Independent School
District GO VRDN,
ROCS Series 30 (PSF of Texas
Gtd.)
3,000 3.63 12/3/98 3,000
Texas State TRAN, Series A59
10,000 3.45 12/2/98 10,000
Texas State Water Financing
Assistance Refunding GO VRDN,
Series 1998A BTP-309
5,385 3.60 12/3/98 5,385
Trinity River IDA IDR VRDN,
Automatic Data Processing,
Inc. Project (Automatic Data
Processing, Inc. Gtd.)
6,200 3.70 12/1/98 6,200
--------
79,765
--------
UTAH--0.7%
Utah State GO VRDN
5,000 3.65% 3/18/99 5,000
--------
VIRGINIA--4.7%
Norfolk GO VRDN, Eagle Trust
No. 944601
10,100 3.28 12/3/98 10,100
Roanoke IDA Hospital Revenue
VRDN, Series 1997A, Carilion
Health System Obligated Group
5,000 3.35 12/1/98 5,000
Roanoke IDA VRDN, Series A,
Roanoke Memorial Hospital
7,700 3.35 12/1/98 7,700
Town of Louisa IDA PCR CP,
Series 1984, Virginia Electric
& Power Co. Project (Virginia
Electric Power Co. Gtd.)
3,400 3.60 12/16/98 3,400
4,200 3.10 2/17/99 4,200
</TABLE>
See accompanying notes to financial statements.
13
<PAGE>
Northern Institutional Funds
Money Market Portfolios
- --------------------------------------------------------------------------------
Statements of Investments
November 30, 1998
(All amounts in thousands, except shares)
<TABLE>
<CAPTION>
Description
- --------------------------------------------------------------------------------------------------------
Principal Maturity Amortized
Amount Rate Date Cost
- --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
4,700 3.25 1/12/99 4,700
------
35,100
------
Town of Louisa PCR CP, Series
1987 (Virginia Electric &
Power Co. Gtd.)
Washington--6.2%
Kent City Economic Development
Corp. IDR VRDN, Associated
Grocers Project (Bank of
America LOC)
3,500 4.02 12/2/98 3,500
Port of Seattle Passenger
Facility Charge VRDN
(MBIA Insured)
10,000 3.45 12/2/98 10,000
Washington State GO VRDN,
Smith-Barney Soc Gen Trust,
Series 1993 B SGB-13
11,950 3.33 12/3/98 11,950
Washington State Public Power
Supply System Revenue Bond,
Series A,
4,000 5.30 7/1/99 4,043
1,000 7.20 7/1/99 1,022
Washington State Public Power
Supply System VRDN, Citicorp
Eagle Trust 944701
10,000 3.33 12/3/98 10,000
Washington State Refunding GO
VRDN,
Series R-92-A, BTP-101
6,000 3.30 12/3/98 6,000
------
46,515
------
Wisconsin--4.1%
Kenosha Unified School District
TRAN, Series 1998-99
4,700 3.38 9/28/99 4,700
Pleasant Prairie PCR VRDN,
Series 1995 B, Wisconsin
Electric Power Co. Project
(Wisconsin Electric Power Co.
Gtd.)
1,830 3.20 12/3/98 1,830
Racine Unified School District
TRAN, Series 1998/99
5,000 4.00 7/7/99 5,012
Wisconsin State GO VRDN, Series
16
19,000 3.63 12/3/98 19,000
------
30,542
------
</TABLE>
<TABLE>
<CAPTION>
Description
- -------------------------------------------------------------------------------------------------
Principal
Amount/ Maturity Amortized
Shares Rate Date Cost/Value
- -------------------------------------------------------------------------------------------------
Wyoming--0.3%
Green River City PCR VRDN,
Allied-Signal, Inc. Project
(Allied-Signal, Inc. Gtd.)
<S> <C> <C> <C>
$ 2,225 3.30% 12/2/98 $ 2,225
- -------------------------------------------------------------------------------------------------
TOTAL MUNICIPAL INVESTMENTS $704,405
- -------------------------------------------------------------------------------------------------
OTHER INVESTMENTS--2.3%
AIM Tax Free Money Market Fund
7,485 -- -- $ 7,485
Dreyfus Tax Exempt Cash Management Fund
400 -- -- 400
Federated Tax-Free Trust Money
Market Fund #15
8,540 -- -- 8,540
Federated Tax-Free Trust Money
Market Fund #73
820 -- -- 820
Provident Municipal Fund
137 -- -- 137
- -------------------------------------------------------------------------------------------------
TOTAL OTHER INVESTMENTS $ 17,382
- -------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS--96.5% $721,787
- -------------------------------------------------------------------------------------------------
Other assets, less liabilities--3.5% 26,364
- -------------------------------------------------------------------------------------------------
NET ASSETS--100.0% $748,151
- -------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
14
<PAGE>
Northern Institutional Funds
Money Market Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES
November 30, 1998
(All amounts in thousands, except net asset value per share)
<TABLE>
<CAPTION>
Diversified Government
Assets Government Select Tax-Exempt
Portfolio Portfolio Portfolio Portfolio
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS:
Investments in securities, at
amortized cost $4,248,022 $853,808 $1,696,592 $721,787
Repurchase agreements, at cost 50,000 800,000 -- --
Cash -- -- 1 --
Receivables:
Interest 29,537 4,711 3,295 7,234
Fund shares sold 855,792 58,639 9,868 34,158
Investment securities sold -- -- -- 9,300
Administrator 87 199 159 54
Other assets 3 82 41 6
- -------------------------------------------------------------------------------
TOTAL ASSETS 5,183,441 1,717,439 1,709,956 772,539
- -------------------------------------------------------------------------------
LIABILITIES:
Payable for:
Fund shares redeemed 362,967 57,382 7,388 18,820
Distributions to shareholders 17,157 6,429 7,083 1,792
Investment Securities Purchased -- -- -- 3,500
Accrued expenses:
Advisory fees 848 331 143 147
Administration fees 339 132 143 59
Custodian fees 34 11 14 6
Transfer agent fees 23 8 6 4
Other liabilities 183 276 202 60
- -------------------------------------------------------------------------------
TOTAL LIABILITIES 381,551 64,569 14,979 24,388
- -------------------------------------------------------------------------------
NET ASSETS $4,801,890 $1,652,870 $1,694,977 $748,151
- -------------------------------------------------------------------------------
ANALYSIS OF NET ASSETS:
Paid-in capital $4,802,827 $1,652,855 $1,694,973 $748,096
Accumulated net realized gains
(losses) on investment transac-
tions (937) 15 4 55
- -------------------------------------------------------------------------------
NET ASSETS $4,801,890 $1,652,870 $1,694,977 $748,151
- -------------------------------------------------------------------------------
Total shares outstanding (no par
value), unlimited shares autho-
rized
Shares 4,795,767 1,652,855 1,694,866 748,096
Service Shares 7,060 -- -- --
Premier Shares -- -- 108 --
- -------------------------------------------------------------------------------
Net asset value, offering and
redemption price per share
Shares $ 1.00 $ 1.00 $ 1.00 $ 1.00
Service Shares $ 1.00 -- -- --
Premier Shares -- -- $ 1.00 --
- -------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
15
<PAGE>
Northern Institutional Funds
Money Market Portfolios
- --------------------------------------------------------------------------------
Statements of Operations
For the Year Ended November 30, 1998
(All amounts in thousands)
<TABLE>
<CAPTION>
Diversified Government
Assets Government Select Tax-Exempt
Portfolio Portfolio Portfolio Portfolio
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Interest income $232,461 $74,343 $80,546 $24,823
- -------------------------------------------------------------------------------
Expenses:
Investment advisory fees 10,271 3,337 3,653 1,713
Administration fees 4,109 1,335 1,460 685
Custodian fees 425 179 182 86
Professional fees 244 80 73 38
Transfer agent fees 182 51 28 28
Registration fees 277 211 190 76
Trustee fees and expenses 117 40 33 18
Other 152 63 51 44
- -------------------------------------------------------------------------------
Total expenses 15,777 5,296 5,670 2,688
Less voluntary waivers of invest-
ment advisory fees -- -- (2,193) --
Less expenses reimbursable by Ad-
ministrator (1,328) (607) (544) (280)
- -------------------------------------------------------------------------------
Net expenses 14,449 4,689 2,933 2,408
- -------------------------------------------------------------------------------
Net investment income 218,012 69,654 77,613 22,415
Net realized gains on investment
transactions 430 108 2 61
- -------------------------------------------------------------------------------
Net increase in net assets re-
sulting from operations $218,442 $69,762 $77,615 $22,476
- -------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
16
<PAGE>
Northern Institutional Funds
Money Market Portfolios
- --------------------------------------------------------------------------------
Statements of Changes in Net Assets
For the Years Ended November 30, 1998 and 1997
(All amounts in thousands)
<TABLE>
<CAPTION>
Diversified Assets Government Government Select Tax-Exempt
Portfolio Portfolio Portfolio Portfolio
-------------------------- -------------------------- ---------------------- ----------------------
1998 1997 1998 1997 1998 1997 1998 1997
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Increase
(decrease) in net
assets from:
Operations:
Net investment
income $ 218,012 $ 189,676 $ 69,654 $ 67,160 $ 77,613 $ 53,967 $ 22,415 $ 23,443
Net realized
gains on
investment
transactions 430 207 108 212 2 78 61 27
- --------------------------------------------------------------------------------------------------------------------------
Net increase in
net assets
resulting from
operations 218,442 189,883 69,762 67,372 77,615 54,045 22,476 23,470
- --------------------------------------------------------------------------------------------------------------------------
Distributions to
shareholders-
Shares:
Net investment
income (217,888) (189,676) (69,654) (67,160) (77,613) (53,976) (22,415) (23,443)
Realized Gains -- -- -- -- -- -- (174) --
- --------------------------------------------------------------------------------------------------------------------------
Total
distributions (217,888) (189,676) (69,654) (67,160) (77,613) (53,976) (22,589) (23,443)
- --------------------------------------------------------------------------------------------------------------------------
Distributions to
shareholders-
Service:
Net investment
income (124) -- -- -- -- -- -- --
- --------------------------------------------------------------------------------------------------------------------------
Total
distributions (124) -- -- -- -- -- -- --
- --------------------------------------------------------------------------------------------------------------------------
Shareholder
transactions (at
$1.00 per share)-
Share:
Proceeds from
the sale of
shares 53,687,791 49,976,344 16,723,046 16,517,258 8,794,437 6,143,005 5,796,229 5,626,217
Reinvested
distributions 9,197 2,169 748 580 5,934 4,952 210 172
Cost of shares
redeemed (52,844,174) (49,216,663) (16,122,433) (16,735,164) (8,344,898) (5,744,991) (5,633,334) (5,679,764)
- --------------------------------------------------------------------------------------------------------------------------
Net increase
(decrease) in
net assets
resulting from
shareholder
transactions-
Shares 852,814 761,850 601,361 (217,326) 455,473 402,966 163,105 (53,375)
- --------------------------------------------------------------------------------------------------------------------------
Shareholder share
transactions (at
$1.00 per share)-
Service:
Proceeds from
the sale of
shares 21,636 -- -- -- -- -- -- --
Cost of shares
redeemed (14,576) -- -- -- -- -- -- --
- --------------------------------------------------------------------------------------------------------------------------
Net increase in
net assets
resulting from
shareholder
transactions-
Service 7,060 -- -- -- -- -- -- --
- --------------------------------------------------------------------------------------------------------------------------
Shareholder share
transactions (at
$1.00 per share)-
Premier:
Proceeds from
the sale of
shares -- -- -- -- 110 -- -- --
Cost of shares
redeemed -- -- -- -- (1) -- -- --
- --------------------------------------------------------------------------------------------------------------------------
Net increase in
net assets
resulting from
shareholder
transactions-
Premier -- -- -- -- 109 -- -- --
- --------------------------------------------------------------------------------------------------------------------------
Net increase
(decrease) 860,304 762,057 601,469 (217,114) 455,584 403,044 162,992 (53,348)
Net assets--
beginning of
year 3,941,586 3,179,529 1,051,401 1,268,515 1,239,393 836,349 585,159 638,507
- --------------------------------------------------------------------------------------------------------------------------
Net assets--end
of year $ 4,801,890 $ 3,941,586 $ 1,652,870 $ 1,051,401 $1,694,977 $1,239,393 $ 748,151 $ 585,159
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
17
<PAGE>
Northern Institutional Funds
Money Market Portfolios
- -------------------------------------------------------------------------------
Financial Highlights
For the Years Ended November 30,
Diversified Assets Portfolio
<TABLE>
<CAPTION>
Shares
--------------------------------------------------------------------------------------------------------------
1998 1997 1996 1995 1994 1993 1992 1991 1990
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of year $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
Income from in-
vestment opera-
tions:
Net investment
income 0.05 0.05 0.05 0.06 0.04 0.03 0.04 0.06 0.08
- ---------------------------------------------------------------------------------------------------------------------------------
Total income from
investment opera-
tions 0.05 0.05 0.05 0.06 0.04 0.03 0.04 0.06 0.08
- ---------------------------------------------------------------------------------------------------------------------------------
Distributions to
shareholders
from:
Net investment
income (0.05) (0.05) (0.05) (0.06) (0.04) (0.03) (0.04) (0.06) (0.08)
- ---------------------------------------------------------------------------------------------------------------------------------
Total distribu-
tions to share-
holders (0.05) (0.05) (0.05) (0.06) (0.04) (0.03) (0.04) (0.06) (0.08)
- ---------------------------------------------------------------------------------------------------------------------------------
Net asset value,
end of year $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
- ---------------------------------------------------------------------------------------------------------------------------------
Total return (a) 5.36% 5.42% 5.30% 5.78%(b) 3.92% 3.00% 3.80% 6.19% 8.01%
Ratio to average
net assets of:
Expenses, net of
waivers and re-
imbursements 0.35% 0.35% 0.34% 0.34% 0.35% 0.34% 0.34% 0.35% 0.35%
Expenses, before
waivers and re-
imbursements 0.38% 0.36% 0.34% 0.34% 0.35% 0.36% 0.35% 0.36% 0.36%
Net investment
income, net of
waivers and
reimbursements 5.31% 5.30% 5.18% 5.63% 3.74% 3.00% 3.79% 6.18% 8.01%
Net investment
income, before
waivers and
reimbursements 5.28% 5.29% 5.18% 5.63% 3.74% 2.98% 3.78% 6.17% 8.00%
Net assets at end
of year (in thou-
sands) $4,794,830 $3,941,586 $3,179,529 $2,610,347 $2,891,880 $3,200,288 $2,801,744 $2,784,485 $2,192,756
- ---------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
1989
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C>
Net asset value,
beginning of year $1.00
Income from in-
vestment opera-
tions:
Net investment
income 0.09
- ---------------------------------------------------------------------------------------------------------------------------------
Total income from
investment opera-
tions 0.09
- ---------------------------------------------------------------------------------------------------------------------------------
Distributions to
shareholders
from:
Net investment
income (0.09)
- ---------------------------------------------------------------------------------------------------------------------------------
Total distribu-
tions to share-
holders (0.09)
- ---------------------------------------------------------------------------------------------------------------------------------
Net asset value,
end of year $1.00
- ---------------------------------------------------------------------------------------------------------------------------------
Total return (a) 8.98%
Ratio to average
net assets of:
Expenses, net of
waivers and re-
imbursements 0.37%
Expenses, before
waivers and re-
imbursements 0.37%
Net investment
income, net of
waivers and
reimbursements 8.98%
Net investment
income, before
waivers and
reimbursements 8.98%
Net assets at end
of year (in thou-
sands) $1,871,713
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Service
-------
1998(c)
- ----------------------------------------------
<S> <C>
Net asset value, beginning of year $1.00
Income from investment operations:
Net investment income 0.02
- ----------------------------------------------
Total income from investment oper-
ations 0.02
- ----------------------------------------------
Distributions to shareholders
from:
Net investment income (0.02)
- ----------------------------------------------
Total distributions to sharehold-
ers (0.02)
- ----------------------------------------------
Net asset value, end of year $1.00
- ----------------------------------------------
Total return (a) 1.76%
Ratio to average net assets of:
(d)
Expenses, net of waivers and re-
imbursements 0.69%
Expenses, before waivers and re-
imbursements 0.72%
Net investment income, net of
waivers and reimbursements 4.94%
Net investment income, before
waivers and reimbursements 4.91%
Net assets at end of year (in
thousands) $ 7,060
- ----------------------------------------------
</TABLE>
(a) Assumes investment at net asset value at the beginning of the year,
reinvestment of all dividends and distributions, and a complete redemption
of the investment at the net asset value at the end of the year. Total
return is not annualized for periods less than one year.
(b) Total return for the year ended November 30, 1995 would have been 5.73%
absent the effect of a capital contribution equivalent to $.0005 per
share received from Northern Trust Corporation.
(c) For the period July 1, 1998 (Service shares issue date) through November
30, 1998.
(d) Annualized for periods less than one year.
See accompanying notes to financial statements.
18
<PAGE>
Northern Institutional Funds
Money Market Portfolios
- --------------------------------------------------------------------------------
Financial Highlights
For the Years Ended November 30,
Government Portfolio
<TABLE>
<CAPTION>
Shares
------------------------------------------------------------------------------------------------------
1998 1997 1996 1995 1994 1993 1992 1991 1990
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of year $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
Income from in-
vestment opera-
tions:
Net investment
income 0.04 0.05 0.05 0.06 0.04 0.03 0.04 0.06 0.08
- --------------------------------------------------------------------------------------------------------------------------
Total income from
investment opera-
tions 0.04 0.05 0.05 0.06 0.04 0.03 0.04 0.06 0.08
- --------------------------------------------------------------------------------------------------------------------------
Distributions to
shareholders from:
Net investment
income (0.04) (0.05) (0.05) (0.06) (0.04) (0.03) (0.04) (0.06) (0.08)
- --------------------------------------------------------------------------------------------------------------------------
Total distribu-
tions to share-
holders (0.04) (0.05) (0.05) (0.06) (0.04) (0.03) (0.04) (0.06) (0.08)
- --------------------------------------------------------------------------------------------------------------------------
Net asset value,
end of year $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
- --------------------------------------------------------------------------------------------------------------------------
Total return (a) 5.28% 5.31% 5.20% 5.64%(b) 3.78% 2.91% 3.91% 6.18% 7.89%
Ratio to average
net assets of:
Expenses, net of
waivers and reim-
bursements 0.35% 0.35% 0.35% 0.35% 0.34% 0.34% 0.34% 0.35% 0.37%
Expenses, before
waivers and reim-
bursements 0.40% 0.37% 0.38% 0.40% 0.41% 0.38% 0.40% 0.40% 0.46%
Net investment
income, net of
waivers and
reimbursements 5.22% 5.18% 5.08% 5.49% 3.60% 2.92% 3.71% 6.03% 7.88%
Net investment
income, before
waivers and
reimbursements 5.17% 5.16% 5.05% 5.44% 3.53% 2.88% 3.65% 5.98% 7.79%
Net assets at end
of year (in thou-
sands) $1,652,870 $1,051,401 $1,268,515 $850,664 $787,816 $1,065,705 $1,163,905 $895,405 $971,720
- --------------------------------------------------------------------------------------------------------------------------
<CAPTION>
1989
- --------------------------------------------------------------------------------------------------------------------------
<S> <C>
Net asset value,
beginning of year $1.00
Income from in-
vestment opera-
tions:
Net investment
income 0.09
- --------------------------------------------------------------------------------------------------------------------------
Total income from
investment opera-
tions 0.09
- --------------------------------------------------------------------------------------------------------------------------
Distributions to
shareholders from:
Net investment
income (0.09)
- --------------------------------------------------------------------------------------------------------------------------
Total distribu-
tions to share-
holders (0.09)
- --------------------------------------------------------------------------------------------------------------------------
Net asset value,
end of year $1.00
- --------------------------------------------------------------------------------------------------------------------------
Total return (a) 8.63%
Ratio to average
net assets of:
Expenses, net of
waivers and reim-
bursements 0.50%
Expenses, before
waivers and reim-
bursements 0.50%
Net investment
income, net of
waivers and
reimbursements 8.63%
Net investment
income, before
waivers and
reimbursements 8.63%
Net assets at end
of year (in thou-
sands) $423,517
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
(a) Assumes investment at net asset value at the beginning of the year,
reinvestment of all dividends and distributions, and a complete redemption
of the investment at the net asset value at the end of the year.
(b) Total return for the year ended November 30, 1995 would have been 5.53%
absent the effect of a capital contribution equivalent to $.0011 per share
received from Northern Trust Corporation.
See accompanying notes to financial statements.
19
<PAGE>
Northern Institutional Funds
Money Market Portfolios
- -------------------------------------------------------------------------------
Financial Highlights
For the Years Ended November 30,
Government Select Portfolio
<TABLE>
<CAPTION>
Shares
----------------------------------------------------------------------------------------------
1998 1997 1996 1995 1994 1993 1992 1991 1990(a)
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, begin-
ning of year $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
Income from investment
operations:
Net investment income 0.05 0.05 0.05 0.06 0.04 0.03 0.04 0.06 0.01
- ------------------------------------------------------------------------------------------------------------------------
Total income from in-
vestment operations 0.05 0.05 0.05 0.06 0.04 0.03 0.04 0.06 0.01
- ------------------------------------------------------------------------------------------------------------------------
Distributions to share-
holders from:
Net investment income (0.05) (0.05) (0.05) (0.06) (0.04) (0.03) (0.04) (0.06) (0.01)
- ------------------------------------------------------------------------------------------------------------------------
Total distributions to
shareholders (0.05) (0.05) (0.05) (0.06) (0.04) (0.03) (0.04) (0.06) (0.01)
- ------------------------------------------------------------------------------------------------------------------------
Net asset value, end of
year $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
- ------------------------------------------------------------------------------------------------------------------------
Total return (b) 5.38% 5.41% 5.31% 5.82%(c) 3.84% 3.00% 3.71% 5.82% 0.50%
Ratio to average net as-
sets of (d):
Expenses, net of waiv-
ers and reimbursements 0.20% 0.20% 0.20% 0.20% 0.20% 0.20% 0.20% 0.20% 0.20%
Expenses, before waiv-
ers and reimbursements 0.39% 0.39% 0.40% 0.41% 0.43% 0.49% 0.52% 0.60% 1.33%
Net investment income,
net of waivers and
reimbursements 5.31% 5.30% 5.19% 5.67% 3.83% 2.99% 3.70% 5.78% 7.65%
Net investment income,
before waivers and
reimbursements 5.12% 5.11% 4.99% 5.46% 3.60% 2.70% 3.38% 5.38% 6.52%
Net assets at end of
year (in thousands) $1,694,869 $1,239,393 $836,349 $685,142 $493,718 $386,507 $264,756 $160,750 $44,215
- ------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Premier
----------
1998(e)
- ---------------------------------------
<S> <C>
Net asset value, begin-
ning of year $1.00
Income from investment
operations:
Net investment income 0.00
- ---------------------------------------
Total income from in-
vestment operations 0.00
- ---------------------------------------
Distributions to share-
holders from:
Net investment income (0.00)
- ---------------------------------------
Total distributions to
shareholders (0.00)
- ---------------------------------------
Net asset value, end of
year $1.00
- ---------------------------------------
Total return (b) 0.10%
Ratio to average net as-
sets of (d):
Expenses, net of waiv-
ers and reimbursements 0.80%
Expenses, before waiv-
ers and reimbursements 0.99%
Net investment income,
net of waivers and
reimbursements 4.71%
Net investment income,
before waivers and
reimbursements 4.52%
Net assets at end of
year (in thousands) $108
- ---------------------------------------
</TABLE>
(a) For the period November 7, 1990 (commencement of operations) through
November 30, 1990.
(b) Assumes investment at net asset value at the beginning of the year,
reinvestment of all dividends and distributions, and a complete redemption
of the investment at the net asset value at the end of the year. Total
return is not annualized for periods less than one year.
(c) Total return for the year ended November 30, 1995 would have been 5.80%
absent the effect of a capital contribution equivalent to $.0002 per share
received from Northern Trust Corporation.
(d) Annualized for periods less than one year.
(e) For the period November 23, 1998 (Premier share issue date) through
November 30, 1998. Per share amounts from net investment income and
distributions from net investment income are less than $0.01 per share.
See accompanying notes to financial statements.
20
<PAGE>
Northern Institutional Funds
Money Market Portfolios
- --------------------------------------------------------------------------------
Financial Highlights
For the Years Ended November 30,
Tax-Exempt Portfolio
<TABLE>
<CAPTION>
Shares
-----------------------------------------------------------------------------------------------------------
1998 1997 1996 1995 1994 1993 1992 1991 1990 1989
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of year $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
Income from invest-
ment operations:
Net investment in-
come 0.03 0.03 0.03 0.04 0.02 0.02 0.03 0.05 0.06 0.06
- --------------------------------------------------------------------------------------------------------------------------------
Total income from
investment opera-
tions 0.03 0.03 0.03 0.04 0.02 0.02 0.03 0.05 0.06 0.06
- --------------------------------------------------------------------------------------------------------------------------------
Distributions to
shareholders from:
Net investment in-
come (0.03) (0.03) (0.03) (0.04) (0.02) (0.02) (0.03) (0.05) (0.06) (0.06)
- --------------------------------------------------------------------------------------------------------------------------------
Total distributions
to shareholders (0.03) (0.03) (0.03) (0.04) (0.02) (0.02) (0.03) (0.05) (0.06) (0.06)
- --------------------------------------------------------------------------------------------------------------------------------
Net asset value,
end of year $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
- --------------------------------------------------------------------------------------------------------------------------------
Total return (a) 3.31% 3.44% 3.37% 3.71% 2.62% 2.27% 2.97% 4.57% 5.71% 6.04%
Ratio to average
net assets of:
Expenses, net of
waivers and reim-
bursements 0.35% 0.35% 0.35% 0.35% 0.35% 0.34% 0.34% 0.35% 0.36% 0.49%
Expenses, before
waivers and reim-
bursements 0.39% 0.39% 0.40% 0.41% 0.36% 0.38% 0.39% 0.40% 0.43% 0.49%
Net investment in-
come, net of waiv-
ers and
reimbursements 3.27% 3.38% 3.32% 3.63% 2.40% 2.27% 2.95% 4.57% 5.71% 6.03%
Net investment in-
come, before waiv-
ers and
reimbursements 3.23% 3.34% 3.27% 3.57% 2.39% 2.23% 2.90% 4.52% 5.64% 6.03%
Net assets at end
of year (in thou-
sands) $748,151 $585,159 $638,507 $803,730 $853,103 $1,191,932 $1,226,480 $872,405 $752,257 $545,215
- --------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(a) Assumes investment at net asset value at the beginning of the year,
reinvestment of all dividends and distributions, and a complete redemption
of the investment at the end of the year.
See accompanying notes to financial statements.
21
<PAGE>
Northern Institutional Funds
Money Market Portfolios
- -------------------------------------------------------------------------------
Notes to Financial Statements
November 30, 1998
1. Organization
Northern Institutional Funds (the "Trust") is a Delaware business trust which
was formed on July 1, 1997, and is registered under the Investment Company Act
of 1940 (as amended) as an open-end management investment company. The Trust,
formerly known as The Benchmark Funds, changed its name effective July 15,
1998. The Trust includes seventeen portfolios, each with its own investment
objective. Prior to March 31, 1998, each portfolio was a series of The
Benchmark Funds, a Massachusetts business trust, which reorganized into the
Trust at the close of business on that date. The Northern Trust Company
("Northern") is the investment adviser for all of the Trust's money market
portfolios and is the custodian and transfer agent for the Trust. Goldman,
Sachs & Co. ("Goldman Sachs") acts as the Trust's administrator and
distributor. Presented herein are the financial statements of the money market
portfolios.
The Trust includes four diversified money market portfolios: Diversified
Assets Portfolio, Government Portfolio, Government Select Portfolio and Tax-
Exempt Portfolio (the "Portfolios"). Each of these Portfolios has three
classes of shares: Shares, Services Shares and Premier Shares. Each class is
distinguished by the level of administrative, liaison and transfer agent
service provided. As of November 30, 1998, Shares, Service Shares and Premier
Shares are outstanding for certain Portfolios.
2. Significant Accounting Policies
The following is a summary of significant accounting policies consistently
followed by the Portfolios in the preparation of their financial statements.
These policies are in conformity with generally accepted accounting principles
("GAAP"). The presentation of financial statements in conformity with GAAP
requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates.
(a) Investment Valuation
Investments are valued at amortized cost, which approximates market value.
Under the amortized cost method, investments purchased at a discount or
premium are valued by amortizing the difference between the original purchase
price and maturity value of the issue over the period to maturity.
(b) Repurchase Agreements
During the term of a repurchase agreement, the market value of the underlying
collateral, including accrued interest, is required to exceed the market value
of the repurchase agreement. The underlying collateral for all repurchase
agreements is held in a customer-only account of Northern, as custodian for
the Trust, at the Federal Reserve Bank of Chicago.
Each Portfolio may enter into joint repurchase agreements with non-affiliated
counterparties through a master repurchase agreement with Northern. Northern
administers and manages these repurchase agreements in accordance with and as
part of its duties under its investment advisory agreements with the
Portfolios and does not collect any additional fees from the Portfolios. The
Diversified Assets and Government Portfolios had entered into such joint
repurchase agreements as of November 30, 1998, as reflected in the
accompanying Statements of Investments.
(c) Interest Income
Interest income is recorded on the accrual basis and includes amortization of
discounts and premiums.
(d) Federal Taxes
It is each Portfolio's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
each year substantially all of its taxable income and tax-exempt income to its
shareholders. Therefore, no provision is made for federal taxes.
At November 30, 1998, the Portfolios had approximately the following amount
of capital loss carryforwards for U.S. federal income tax purposes:
<TABLE>
<CAPTION>
Amount Year of Expiration
- -----------------------------------------------------
(in thousands)
<S> <C> <C>
Diversified Assets $939 2002
- -----------------------------------------------------
</TABLE>
This amount is available to be carried forward to offset future capital gains
to the extent permitted by applicable laws or regulations.
(e) Expenses
Expenses arising in connection with a specific Portfolio are allocated to that
Portfolio. Certain expenses arising in connection with a class of shares are
allocated to that class of shares.
Expenses incurred which do not specifically relate to an individual Portfolio
are allocated among the Portfolios based on each Portfolio's relative average
net assets for the year.
22
<PAGE>
Northern Institutional Funds
Money Market Portfolios
- -------------------------------------------------------------------------------
Notes to Financial Statements
November 30, 1998
(f) Distributions
Each Portfolio's net investment income is declared daily as a dividend to
shareholders of record as of 3:00 p.m., Chicago time. Net realized short-term
capital gains, if any,
in excess of net capital loss carryforwards, are declared and distributed at
least annually.
Distributions of net investment income with respect to a calendar month
(including with respect to shares redeemed at any time during the month) are
made as soon as practicable following the end of the month. Distributions are
made by each Portfolio to Northern in cash or automatically reinvested in
additional shares of the Portfolio. Northern has undertaken to credit or
arrange for the crediting of such distributions to each shareholder's account
with Northern, its affiliates or its correspondents.
3. Advisory, Transfer Agency, Custodian and Other Agreements
As compensation for the services rendered as investment adviser, including the
assumption by Northern of the expenses related thereto, Northern is entitled
to a fee, computed daily and payable monthly, at an annual rate of .25% of
each Portfolio's average daily net assets.
Until further notice, Northern has voluntarily agreed to waive .15% of its
advisory fee for the Government Select Portfolio, reducing such fee to .10%
per annum. The effect of this waiver by Northern for the year ended November
30, 1998 was to reduce advisory fees as shown on the accompanying Statements
of Operations.
As compensation for the services rendered as custodian and transfer agent,
including the assumption by Northern of the expenses related thereto, Northern
receives compensation based on a pre-determined schedule of charges approved
by the Board.
4. Administration and Distribution Agreements
The Trust has an administration agreement with Goldman Sachs whereby each
Portfolio pays the administrator a fee, computed daily and payable monthly, at
an annual rate of .10% of each Portfolio's average daily net assets.
In addition during the fiscal year prior to April 1, 1998, if the sum of a
Portfolio's expenses, including the administration fee, but excluding the fees
payable to Northern pursuant to duties as advisor, and certain extraordinary
expenses (such as taxes, interest and indemnification expenses), exceeded on
an annualized basis .10% of a Portfolio's average daily net assets, Goldman
Sachs reimbursed each Portfolio for the amount of the excess pursuant to the
terms of the administration agreement. On April 1, 1998, upon the offering of
the Portfolios' Premier Shares and Service Shares, Goldman Sachs reimbursed,
each Portfolio's expense (including fees payable to Goldman Sachs as
administrator, but excluding the fees payable to Northern for its duties as
adviser and transfer agent, payments under the service plan for the
Portfolios' Premier Shares and Service Shares and certain extraordinary
expenses) which exceeded on an annualized basis .10% of the Portfolio's
average daily net assets.
No administration fees were waived under this agreement during the year ended
November 30, 1998. Furthermore, Goldman Sachs voluntarily agreed to reimburse
each Portfolio for certain expenses in the event that such expenses, as
defined, exceed on an annualized basis .10% of its average daily net assets.
Expenses reimbursed during the year ended November 30, 1998 are shown on the
accompanying Statements of Operations.
Goldman Sachs receives no compensation under the distribution agreement.
5. Service Plan
The Trust has adopted a Service Plan pursuant to which the Trust may enter
into agreements with Northern, its affiliates or other institutions
("Servicing Agents") under which they will render certain administrative
support services and in some cases personal and account maintenance services
for their customers or investors who beneficially own Service and Premier
Shares. As compensation under the Service Plan, the institution or other
financial intermediary receives a fee at an annual rate of up to .25% and .50%
of the average daily net asset value of the outstanding Service and Premier
Shares, respectively. Furthermore, the Service Plan also provides for the
payment of fees to Northern, Goldman Sachs or other institutions for
consulting services, technology and systems support services to the Service
and Premier Shares customers at an annual rate of up to .08% of the average
daily net asset value of such shares serviced.
6. Bank Loans
Prior to January 16, 1998, the Trust maintained a $5,000,000 revolving bank
credit line and a $15,000,000 conditional revolving credit line for liquidity
and other purposes. As of January 16, 1998, the Trust maintains a $100,000,000
revolving bank credit line and a $15,000,000 conditional revolving credit line
for liquidity and other purposes. Borrowings under this arrangement bear
interest at 1% above the federal funds rate and are secured by pledged
securities equal to or exceeding 120% of the outstanding balance.
There were no borrowings under this agreement during the year ended November
30, 1998.
23
<PAGE>
Northern Institutional Funds
Money Market Portfolios
- -------------------------------------------------------------------------------
Report of Independent Auditors
To the Shareholders and Trustees of
Northern Institutional Funds
Money Market Portfolios
We have audited the accompanying statements of assets and liabilities,
including the statements of investments, of the Diversified Assets,
Government, Government Select and Tax-Exempt Portfolios, comprising the Money
Market Portfolios of the Northern Institutional Funds, as of November 30,
1998, and the related statements of operations for the year then ended and
changes in net assets for each of the two years in the period then ended and
financial highlights for the periods indicated therein. These financial
statements and financial highlights are the responsibility of the Portfolios'
management. Our responsibility is to express an opinion on these financial
statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements. Our procedures included verification of the
investments owned at November 30, 1998 by physical examination of the
securities held by the custodian and by correspondence with central
depositories and brokers. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of the
Diversified Assets, Government, Government Select and Tax-Exempt Portfolios,
comprising the Money Market Portfolios of the Northern Institutional Funds, at
November 30, 1998, the results of their operations for the year then ended and
the changes in their net assets for each of the two years in the period then
ended and financial highlights for the periods indicated therein, in
conformity with generally accepted accounting principles.
/s/ Ernst & Young LLP
Chicago, Illinois
January 15, 1999
24
<PAGE>
Investment Advisers
The Northern Trust Company
50 South LaSalle Street
Chicago, Illinois 60675
Transfer Agent and Custodian
The Northern Trust Company
Administrator and Distributor
Goldman, Sachs & Co.
4900 Sears Tower
Chicago, IL 60606
Trustees
William H. Springer, Chairman
Richard Gordon Cline
Edward J. Condon, Jr.
John W. English
Sandra Polk Guthman
Frederick T. Kelsey
Richard P. Strubel
Officers
Frank J. Polefrone, President
James A. Fitzpatrick, Vice President
Gordon Linke, Vice President
Nancy L. Mucker, Vice President
John M. Perlowski, Treasurer
Michael J. Richman, Secretary
Deborah A. Farrell, Assistant Secretary
Steven Hartstein, Assistant Secretary
Howard B. Surloff, Assistant Secretary
Valerie A. Zondorak, Assistant Secretary
Independent Auditors
Ernst & Young LLP
233 S. Wacker Drive
Chicago, IL 60606
Legal Counsel
Drinker Biddle & Reath LLP
1345 Chestnut Street
Philadelphia, PA 19107
This Annual Report is authorized for distribution to prospective investors only
when preceded or accompanied by a Prospectus which contains facts concerning the
objectives and policies, management expenses and other information.
<PAGE>
NORTHERN INSTITUTIONAL FUNDS
FIXED INCOME AND EQUITY PORTFOLIOS
NOVEMBER 30 1998
ANNUAL REPORT
<PAGE>
Northern Institutional Funds
Fixed Income and Equity Portfolios
- --------------------------------------------------------------------------------
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PAGE
----
<S> <C>
Management's Discussion of Portfolio Performance........................... 2
Fixed Income Portfolios
Statements of Investments
Bond Portfolio......................................................... 23
Intermediate Bond Portfolio............................................ 25
International Bond Portfolio........................................... 27
Short-Intermediate Bond Portfolio...................................... 28
U.S. Government Securities Portfolio................................... 30
U.S. Treasury Index Portfolio.......................................... 31
Statements of Assets and Liabilities..................................... 32
Statements of Operations................................................. 33
Statements of Changes in Net Assets...................................... 34
Financial Highlights..................................................... 36
Equity Portfolios
Statements of Investments
Balanced Portfolio..................................................... 42
Diversified Growth Portfolio........................................... 45
Equity Index Portfolio................................................. 47
Focused Growth Portfolio............................................... 54
International Equity Index Portfolio................................... 56
International Growth Portfolio......................................... 68
Small Company Index Portfolio.......................................... 70
Statements of Assets and Liabilities..................................... 92
Statements of Operations................................................. 93
Statements of Changes in Net Assets...................................... 94
Financial Highlights..................................................... 96
Notes to the Financial Statements.......................................... 103
Report of Independent Auditors............................................. 109
</TABLE>
- --------------------------------------------------------------------------------
1
<PAGE>
Northern Institutional Funds
Fixed Income Portfolios
- --------------------------------------------------------------------------------
Management's Discussion of Portfolio Performance
Northern Institutional Bond Portfolio
Investors became increasingly risk-averse during the fiscal year, emphasizing
liquidity at the expense of yield. This phenomenon was driven by the global
financial distress that began in Asia and by Japan's inability to overcome its
recession. Treasury securities already were benefiting from benign inflation
and a growing government budget surplus when the flight-to-quality emerged.
This demand for Treasuries set off a rally that pushed interest rates down by
more than 1 percentage point across the yield curve.
Not surprisingly, Treasuries outpaced sectors that exposed investors to
greater risk. Specifically, corporate securities suffered because of credit
concerns, lack of liquidity, and supply and demand factors. Likewise, the
mortgage-backed security market underperformed, as prepayment and credit fears
affected even the most protected securities.
Later in the fiscal year, after the Federal Reserve began its first of three
rate cuts, a greater degree of normalcy returned to the markets. Treasury
securities started losing their safe-haven appeal, and investors re-engaged in
risk-taking.
The Portfolio's total return from commencement of operations to the fiscal
year ended was ahead of its benchmark. While the Portfolio's concentration in
non-Treasury securities, marginally greater interest rate sensitivity
throughout most of the period offset the effects of the non-Treasury
overweight. Security selection also contributed positively to the Portfolio's
performance.
Recently, we have moved the Portfolio's interest rate sensitivity closer to
that of its benchmark, reflecting our current views toward rates. We also
believe spread sectors offer attractive long-term value, so we have selectively
increased exposure to these areas.
Mark Wirth
Portfolio Manager
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN NORTHERN INSTITUTIONAL
BOND PORTFOLIO VS. THE LEHMAN BROTHERS GOVERNMENT/CORPORATE BOND INDEX
<TABLE>
<CAPTION>
Bond Portfolio Lehman Brothers
- --------------------------------------------
<S> <C> <C>
1/11/93 $10,000 $10,000
- --------------------------------------------
11/30/93 $11,060 $11,052
- --------------------------------------------
11/30/94 $10,613 $10,641
- --------------------------------------------
11/30/95 $12,900 $12,587
- --------------------------------------------
11/30/96 $13,619 $13,291
- --------------------------------------------
11/30/97 $14,732 $14,275
- --------------------------------------------
11/30/98 $16,250 $15,752
- --------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Lehman Brothers
Average Annual Total Returns Government/
For Periods Ended Class A Corporate
November 30, 1998: Shares Bond Index
<S> <C> <C>
One Year: 10.31% 10.35%
- ----------------------------------------------------------------------------------------
Five Year: 8.00% 7.34%
- ----------------------------------------------------------------------------------------
Since Commencement on 1/11/93: 8.59% 8.02%
</TABLE>
<TABLE>
<CAPTION>
Bond Portfolio Lehman Brothers
- -----------------------------------------------
<S> <C> <C>
7/ 3/95 $10,000 $10,000
- -----------------------------------------------
11/30/95 $11,608 $10,499
- -----------------------------------------------
11/30/96 $11,174 $11,086
- -----------------------------------------------
11/30/97 $12,054 $11,907
- -----------------------------------------------
11/30/98 $13,265 $13,139
- -----------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Lehman Brothers
Average Annual Total Returns Government/
For Periods Ended Class C Corporate
November 30, 1998: Shares Bond Index
<S> <C> <C>
One Year: 10.04% 10.35%
- ----------------------------------------------------------------------------------------
Since Commencement on 7/3/95: 8.63% 8.32%
</TABLE>
2
<PAGE>
- --------------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN NORTHERN INSTITUTIONAL
BOND PORTFOLIO VS. THE LEHMAN BROTHERS GOVERNMENT/CORPORATE BOND INDEX
- ----------------------------------------------------------
__.__ Bond Portfolio --.-- Lehman Brothers Government/
Corporate Bond Index
- ----------------------------------------------------------
<TABLE>
<CAPTION>
- -----------------------------------------
Bond Portfolio Lehman Brothers
- -----------------------------------------
<S> <C> <C>
9/14/94 $10,000 $10,000
- -----------------------------------------
11/30/94 $ 9,906 $ 9,891
- -----------------------------------------
11/30/95 $11,992 $11,700
- -----------------------------------------
11/30/96 $12,612 $12,354
- -----------------------------------------
11/30/97 $13,588 $13,269
- -----------------------------------------
11/30/98 $14,932 $14,641
- -----------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Lehman Brothers
Average Annual Total Returns Government/
For Periods Ended Class D Corporate
November 30, 1998: Shares Bond Index
<S> <C> <C>
One Year: 9.89% 10.35%
- ----------------------------------------------------------------------------------------
Since Commencement on 9/14/94: 9.98% 9.47%
</TABLE>
3
<PAGE>
Northern Institutional Funds
Fixed Income Portfolios
- --------------------------------------------------------------------------------
Management's Discussion of Portfolio Performance
Northern Institutional Intermediate Bond Portfolio
As global uncertainty intensified early in the fiscal year, investors sought
refuge in the safety and liquidity of government bonds. Such activity helped
yields decline by up to 1.25 percentage points for two-year Treasuries and 1
percentage point for 30-year Treasury bonds.
Performance was not as good among non-Treasury sectors. The additional yield
available in the corporate bond sector was swamped by price losses resulting
from excess supply, earnings concerns and Asian weakness. Likewise, the
mortgage-backed security market experienced some relative losses as prepayment
risks affected even the most protected securities.
The Portfolio experienced solid absolute total returns, as the generous "real
yields" available in the bond market kept us fully invested. But the
Portfolio's performance trailed that of its benchmark due to the Portfolio's
overweight in non-Treasury sectors.
Thanks primarily to the Federal Reserve's three recent interest rate cuts,
which brought short-term interest rates down by 0.75 percentage points, spread
sectors have seen some improvement. With a more "normal" environment returning
to the fixed-income markets, Treasury securities have lost their safe-haven
appeal, and investors have returned to corporate and mortgage-backed bonds.
From a longer-term perspective, the risk/reward trade-off in these sectors
appears quite favorable.
Steve Schafer
Portfolio Manager
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN NORTHERN INSTITUTIONAL
INTERMEDIATE BOND PORTFOLIO VS. THE LEHMAN BROTHERS INTERM. GOV'T/CORP INDEX
- ---------------------------------------------------
__.__ Intermediate Bond Portfolio
- --.-- Lehman Brother's Interm. Gov't/Corp. Index
- ---------------------------------------------------
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------
Intermediate Bond Portfolio Lehman Brother's Interm. Gov't/Corp. Index
- ------------------------------------------------------------------------------------
<S> <C> <C>
8/1/97 $10,000 $10,000
- ------------------------------------------------------------------------------------
11/30/97 $10,117 $10,200
- ------------------------------------------------------------------------------------
11/30/98 $10,881 $11,102
- ------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Average Annual Total Returns Lehm. Int.
For Periods Ended Class A Gov't/Corp
November 30, 1998: Shares Index
<S> <C> <C>
One Year 7.55% 8.85%
Since Commencement on 8/1/97: 6.53% 8.15%
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------
Intermediate Bond Portfolio Lehman Brother's Interm. Gov't/Corp. Index
- ------------------------------------------------------------------------------------
<S> <C> <C>
10/5/98 $10,000 $10,000
- ------------------------------------------------------------------------------------
11/30/98 $ 9,989 $ 9,998
- ------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Aggregate Total Return Lehm. Int.
For Period Ended Class D Gov't/Corp
November 30, 1998: Shares Index
<S> <C> <C>
Commencement on 10/5/98: -0.70% -0.11%
</TABLE>
4
<PAGE>
- --------------------------------------------------------------------------------
Northern Institutional International Bond Portfolio
The Portfolio generated a substantial positive return over the 12 months ending
November 30, 1998. This primarily was due to the continued fallout from the
Asian crisis and its "spread" to Eastern Europe and Latin America. These events
caused new fears of a sharp global economic slowdown. They also spawned a
flight from risky financial assets and a rush by investors into the safety of
high-quality government bonds. In response, yields on longer-dated
industrialized government bonds declined sharply.
Currency factors also played a role in the Portfolio's performance. Because
most of the Portfolio's assets are denominated in foreign currencies,
shareholders benefited from the general weakness in the U.S. dollar. However,
the Portfolio underperformed its benchmark index due to the Portfolio's
overweighted positions in U.S. dollars and British pounds.
Looking forward, much of the good news that goes along with slower economic
growth and low inflation is reflected in global interest rates. We continue to
slightly overweight the United States and United Kingdom at the expense of an
underweight in Japan. Given the nature of the Portfolio, the majority of the
bonds are denominated in foreign currencies. As such, returns will continue to
be very sensitive to the direction of the U.S. dollar.
Michael Lannan and Steven M. Schafer
Portfolio Managers
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN NORTHERN INSTITUTIONAL
INTERNATIONAL BOND PORTFOLIO VS. THE J.P. MORGAN NON-U.S. GOVERNMENT BOND INDEX
- --------------------------------------------------------------------------------
__.__ International Bond Portfolio
- --.-- J.P. Morgan Non-U.S. Government Bond Index
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------
International Bond Portfolio J.P. Morgan Non-U.S. Government Bond Index
- ------------------------------------------------------------------------------------
<S> <C> <C>
3/25/94 $10,000 $10,000
- ------------------------------------------------------------------------------------
11/30/94 $10,403 $10,521
- ------------------------------------------------------------------------------------
11/30/95 $12,296 $12,589
- ------------------------------------------------------------------------------------
11/30/96 $13,461 $13,487
- ------------------------------------------------------------------------------------
11/30/97 $13,055 $13,022
- ------------------------------------------------------------------------------------
11/30/98 $14,602 $14,850
- ------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
J.P.
Morgan
Average Annual Total Returns Non-U.S.
For Periods Ended Class A Government
November 30, 1998: Shares Bond Index
<S> <C> <C>
One Year: 11.85% 14.04%
- --------------------------------------------------------------------------------------------
Since Commencement on 3/28/94: 8.42% 8.81%
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------
International Bond Portfolio J.P. Morgan Non-U.S. Government Bond Index
- ------------------------------------------------------------------------------------
<S> <C> <C>
11/20/95 $10,000 $10,000
- ------------------------------------------------------------------------------------
11/30/95 $ 9,970 $ 9,912
- ------------------------------------------------------------------------------------
11/30/96 $10,872 $10,619
- ------------------------------------------------------------------------------------
11/30/97 $10,504 $10,253
- ------------------------------------------------------------------------------------
11/30/98 $11,704 $11,692
- ------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
J.P.
Morgan
Average Annual Total Returns Non-U.S.
For Periods Ended Class D Government
November 30, 1998: Shares Bond Index
<S> <C> <C>
One Year: 11.43% 14.04%
- ------------------------------------------------------------------------------------------
Since Commencement on 11/20/95: 5.33% 5.30%
</TABLE>
5
<PAGE>
Northern Institutional Funds
Fixed Income Portfolios
- --------------------------------------------------------------------------------
Management's Discussion of Portfolio Performance
Northern Institutional Short-Intermediate Bond Portfolio
The Asian financial crisis and Japan's ongoing recession set the tone for a
fiscal year in which investors became increasingly risk-averse, emphasizing
liquidity at the expense of yield. With Treasury securities already benefiting
from low inflation and a growing government budget surplus, the resultant
flight to quality set off a rally that pushed interest rates down by more than
1 percentage point across the yield curve.
In this environment, Treasuries outpaced spread sectors. For example,
corporate securities suffered because of credit concerns, lack of liquidity,
and comparatively worse supply and demand factors. Likewise, the mortgage-
backed security market experienced some relative underperformance because
prepayment and credit fears affected even the most protected securities.
By the end of the year, the market began to improve, primarily because the
Federal Reserve cut interest rates three times, bringing short-term rates down
by 0.75 percentage points. With a greater degree of normalcy returning to the
markets, Treasury securities have lost their safe-haven appeal as investors
have re-engaged in risk taking.
The Portfolio experienced solid absolute total returns for the fiscal year,
as the generous "real yields" available in the bond market kept us fully
invested. But the Portfolio slightly lagged its benchmark due to the
Portfolio's overweight in non-Treasury securities.
The Portfolio's interest rate sensitivity is currently positioned close to
the benchmark, reflecting our views on the market. We believe that the
risk/reward trade-off in spread sectors is now favorable, especially over the
long term, and we have selectively increased the Portfolio's exposure to non-
Treasury securities.
Mark Wirth
Portfolio Manager
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN NORTHERN INSTITUTIONAL
SHORT-INTERMEDIATE BOND PORTFOLIO VS. THE MERRILL LYNCH
1-5 CORPORATE/GOVERNMENT INDEX
- ------- Short-Intermediate Bond Portfolio
__.__ Merrill Lynch 1-5 Corporation/Government Bond Index
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------
Short-Intermediate Bond Portfolio Merrill Lynch 1-5 Corporate/Government Index
- --------------------------------------------------------------------------------------------------
<S> <C> <C>
1/11/93 $10,000 $10,000
- --------------------------------------------------------------------------------------------------
11/30/93 $10,590 $10,641
- --------------------------------------------------------------------------------------------------
11/30/94 $10,679 $10,596
- --------------------------------------------------------------------------------------------------
11/30/95 $11,916 $11,893
- --------------------------------------------------------------------------------------------------
11/30/96 $12,592 $12,582
- --------------------------------------------------------------------------------------------------
11/30/97 $13,341 $13,348
- --------------------------------------------------------------------------------------------------
11/30/98 $14,342 $14,423
- --------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Merrill Lynch
Average Annual Total 1-5 Corporate/
Returns For Periods Ended Class A Government
November 30, 1998: Shares Bond Index
<S> <C> <C>
One Year: 7.50% 8.05%
- ------------------------------------------------------------------------------------------
Five Year: 6.25% 6.27%
- ------------------------------------------------------------------------------------------
Since Commencement on 1/11/93: 6.31% 6.42%
</TABLE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------
Label Short-Intermediate Bond Portfolio Merrill Lynch 1-5 Corporate/Government Index
- ---------------------------------------------------------------------------------------------------
<S> <C> <C>
9/14/94 $10,000 $10,000
- ---------------------------------------------------------------------------------------------------
11/30/94 $ 9,970 $ 9,928
- ---------------------------------------------------------------------------------------------------
11/30/95 $11,076 $11,143
- ---------------------------------------------------------------------------------------------------
11/30/96 $11,654 $11,788
- ---------------------------------------------------------------------------------------------------
11/30/97 $12,300 $12,507
- ---------------------------------------------------------------------------------------------------
11/30/98 $13,171 $13,514
- ---------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Merrill Lynch
Average Annual Total 1-5 Corporate/
Returns For Periods Ended Class D Government
November 30, 1998: Shares Bond Index
<S> <C> <C>
One Year: 7.08% 8.05%
- ------------------------------------------------------------------------------------------
Since Commencement on 9/14/94: 6.75% 7.41%
</TABLE>
6
<PAGE>
- --------------------------------------------------------------------------------
Northern Institutional U.S. Government Securities Portfolio
At the onset of 1998, the Federal Reserve had an asymmetric bias toward higher
interest rates. As the year drew to a close, though, the Fed had adopted a
formal directive toward lower interest rates, cutting rates three times for a
total of 0.75 percentage points.
Clearly, expectations have changed. The inflation that was to accompany
strong U.S. economic growth never materialized. Instead, Asian economic
problems spread throughout the world, bringing slower worldwide growth,
deflationary fears and a flight to quality. In this environment, the U.S.
Treasury market was the best performing bond sector. Yields on two-year
Treasuries, for example, declined 1.25 percentage points over the fiscal year.
The Portfolio's performance was close to being in line with its benchmark, as
the generous "real yields" available in the bond market kept us fully invested
during most of the period. The Portfolio's position in mortgage-backed
securities provided mixed returns due to prepayment risks, which caused even
the most protected securities to experience some relative price losses.
Because a more "normal" environment recently has returned to the fixed income
markets, Treasury securities have lost their safe-haven status. Yields on
intermediate-term Treasuries have increased modestly, and the yield curve has
regained an upwardly sloping shape. We recently shifted the Portfolio to a more
neutral interest rate posture, reflecting our views on economic growth and
inflation.
Steve Schafer
Portfolio Manager
COMPARISON OF CHANGE IN VALUE OF
$10,000 INVESTMENT IN NORTHERN INSTITUTIONAL U.S. GOVERNMENT SECURITIES
PORTFOLIO VS. THE MERRILL LYNCH 1-5 GOVERNMENT INDEX
___.___ U.S.Government Securities Portfolio
---.--- Merrill Lynch 1-5 Government Index
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------
U.S. Government Securities Portfolio Merrill Lynch 1-5 Government Index
- ---------------------------------------------------------------------------------------------------
<S> <C> <C>
4/4/93 $10,000 $10,000
- ---------------------------------------------------------------------------------------------------
11/30/93 $10,300 $10,346
- ---------------------------------------------------------------------------------------------------
11/30/04 $10,241 $10,295
- ---------------------------------------------------------------------------------------------------
11/30/95 $11,386 $11,538
- ---------------------------------------------------------------------------------------------------
11/30/96 $11,972 $12,192
- ---------------------------------------------------------------------------------------------------
11/30/97 $12,682 $12,929
- ---------------------------------------------------------------------------------------------------
11/30/98 $13,615 $13,976
- ---------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Average Annual Total Returns Merrill Lynch
For Periods Ended Class A 1-5 Government
November 30, 1998: Shares Index
<S> <C> <C>
One Year: 7.36% 8.10%
- ------------------------------------------------------------------------------------------
Five Year: 5.74% 6.20%
- ------------------------------------------------------------------------------------------
Since Commencement on 4/5/93: 5.60% 6.09%
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------
U.S. Gov Sec Port Merrill 1-5 Gov
- -----------------------------------------------------------------------------------------------
<S> <C> <C>
12/29/95 $10,000 $10,000
- -----------------------------------------------------------------------------------------------
11/30/96 $10,405 $10,476
- -----------------------------------------------------------------------------------------------
11/30/97 $10,995 $11,109
- -----------------------------------------------------------------------------------------------
11/30/98 $11,775 $12,009
- -----------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Average Annual Total Returns Merrill Lynch
For Periods Ended Class C 1-5 Government
November 30, 1998: Shares Index
<S> <C> <C>
One Year: 7.10% 8.10%
- ----------------------------------------------------------------------------------------
Since Commencement on 12/29/95: 5.75% 6.46%
</TABLE>
7
<PAGE>
Northern Institutional Funds
Fixed Income Portfolios
- --------------------------------------------------------------------------------
Management's Discussion of Portfolio Performance
Northern Institutional U.S. Government Securities Portfolio--Continued
COMPARISON OF CHANGE IN VALUE OF
$10,000 INVESTMENT IN NORTHERN INSTITUTIONAL U.S. GOVERNMENT SECURITIES
PORTFOLIO VS. THE MERRILL LYNCH 1-5 GOVERNMENT INDEX
- ---------------------------------------------
__.__ U.S. Government Securities Portfolio
- --.-- Merrill Lynch 1-5 Government Index
- ---------------------------------------------
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------
U.S. Government Securities Portfolio Merrill Lynch 1-5 Government Index
- ------------------------------------------------------------------------------------
<S> <C> <C>
9/15/94 $10,000 $10,000
- ------------------------------------------------------------------------------------
11/30/94 $ 9,910 $ 9,913
- ------------------------------------------------------------------------------------
11/30/95 $10,966 $11,110
- ------------------------------------------------------------------------------------
11/30/96 $11,490 $11,740
- ------------------------------------------------------------------------------------
11/30/97 $12,123 $12,450
- ------------------------------------------------------------------------------------
11/30/98 $12,967 $13,458
- ------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Average Annual Total Returns Merrill Lynch
For Periods Ended Class D 1-5 Government
November 30, 1998: Shares Index
<S> <C> <C>
One Year: 6.96% 8.10%
- ----------------------------------------------------------------------------------------
Since Commencement on 9/15/94: 6.36% 7.31%
</TABLE>
8
<PAGE>
- --------------------------------------------------------------------------------
Northern Institutional U.S. Treasury Index Portfolio
Several important factors influenced the Treasury market during the fiscal
year: the flight to quality as investors replaced stocks with less-volatile
bonds; the anticipation of the Federal Reserve lowering interest rates; the Fed
actually lowering rates--three times; and continued low inflation.
These factors caused yields to decline by more than 1 percentage point in the
two- to 10-year range and by about 1 percentage point on the long end. U.S.
Treasuries outpaced investment-grade corporate bonds, mortgage- and asset-
backed securities and U.S. agency securities, returning close to 11% for the
one-year period ending November 30, 1998.
As designed, the Portfolio's fiscal-year performance was in line with the
Lehman U.S. Treasury Bond Index. We will continue to pursue a passive
investment strategy by investing in securities represented by the Index. Our
ongoing goal is to seek returns that closely approximate those of the Index.
Kenneth R. Duetsch II
Portfolio Manager
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN NORTHERN INSTITUTIONAL
U.S. TREASURY INDEX PORTFOLIO VS. THE LEHMAN BROTHERS U.S. TREASURY BOND INDEX
- --------------------------------------------------------------------------------
__.__ U.S. Treasury Index Portfolio
- --.-- Lehman Brothers Treasury Bond Index
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------
U.S. Treasury Index Portfolio Lehman Brothers Treasury Bond Index
- -------------------------------------------------------------------------------------
<S> <C> <C>
1/11/93 $10,000 $10,000
- -------------------------------------------------------------------------------------
11/30/93 $10,994 $11,019
- -------------------------------------------------------------------------------------
11/30/94 $10,576 $10,625
- -------------------------------------------------------------------------------------
11/30/95 $12,369 $12,473
- -------------------------------------------------------------------------------------
11/30/96 $13,000 $13,127
- -------------------------------------------------------------------------------------
11/30/97 $13,697 $14,088
- -------------------------------------------------------------------------------------
11/30/98 $15,492 $15,634
- -------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Average Annual Total Lehman Brothers
Returns For Periods Ended Class A U.S. Treasury
November 30, 1998: Shares Bond Index
<S> <C> <C>
One Year: 10.92% 10.98%
- ----------------------------------------------------------------------------------------
Five Year: 7.10% 7.25%
- ----------------------------------------------------------------------------------------
Since Commencement on 1/11/93: 7.71% 7.88%
</TABLE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------
U.S. Treasury Index Portfolio Lehman Brothers Treasury Bond Index
- -------------------------------------------------------------------------------------
<S> <C> <C>
10/7/98 $10,000 $10,000
- -------------------------------------------------------------------------------------
11/30/98 $ 9,979 $ 9,995
- -------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Aggregate Total Lehman Brothers
Return For Period Ended Class C U.S. Treasury
November 30, 1998: Shares Bond Index
<S> <C> <C>
Commencement on 10/7/98: -1.39% -0.34%
</TABLE>
9
<PAGE>
Northern Institutional Funds
Fixed Income Portfolios
- --------------------------------------------------------------------------------
Management's Discussion of Portfolio Performance
Northern Institutional U.S. Treasury Index Portfolio--Continued
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN NORTHERN INSTITUTIONAL
U.S. TREASURY INDEX PORTFOLIO VS. THE LEHMAN BROTHERS U.S. TREASURY BOND INDEX
- --------------------------------------------------------------------------------
__.__ U.S. Treasury Index Portfolio
- --.-- Lehman Brothers Treasury Bond Index
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------
U.S. Treasury Index Portfolio Lehman Brothers Treasury Bond Index
- -------------------------------------------------------------------------------------
<S> <C> <C>
11/16/94 $10,000 $10,000
- -------------------------------------------------------------------------------------
11/30/94 $10,037 $10,069
- -------------------------------------------------------------------------------------
11/30/95 $11,687 $11,821
- -------------------------------------------------------------------------------------
11/30/96 $12,239 $12,441
- -------------------------------------------------------------------------------------
11/30/97 $13,099 $13,352
- -------------------------------------------------------------------------------------
11/30/98 $14,474 $14,817
- -------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Average Annual
Total Returns Lehman Brothers
For Periods Ended Class D U.S. Treasury
November 30, 1998: Shares Bond Index
<S> <C> <C>
One Year: 10.50% 10.98%
- ----------------------------------------------------------------------------------------------
Since Commencement
on 11/16/94: 9.58% 10.22%
</TABLE>
10
<PAGE>
- --------------------------------------------------------------------------------
Northern Institutional Balanced Portfolio
The Portfolio posted strong results for the fiscal year, slightly outperformed
by its benchmark index for the 12 months ending November 30, 1998. We attribute
this to several factors. We maintained a neutral-to-overweight position in
equities. Within the equity class, we focused on large-cap stocks and those
with a high degree of earnings consistency. We avoided companies with a high
degree of foreign exposure. We stayed away from economically sensitive issues.
We kept a slightly longer duration in the fixed income component, versus the
index. We continued to implement a low-turnover strategy.
Despite the rich valuations within the large-cap sector, we felt that the
heightened uncertainty in the world markets would create a general flight to
quality, which would benefit this sector.
A key strategy during the year was to lower the Portfolio's risk profile. We
accomplished this by slightly trimming the equity weighting and by increasing
the equity diversification. In the bond portfolio, we recently reduced the
Portfolio's interest rate sensitivity (duration) to a neutral position. Earlier
in the year, the Portfolio's duration was greater than that of the index, which
helped the Portfolio's performance.
Going forward, the Portfolio is positioned for a continued slowing economy
and lower interest rates. Our belief is that high-quality companies will
continue to be the preferred haven for most investors, and we are finding some
opportunities outside the large-cap arena. In the bond market, we continue to
favor corporate and mortgage-backed bonds over Treasuries.
Jon Brorson and Monty Memler
Portfolio Managers
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN NORTHERN INSTITUTIONAL
BALANCED PORTFOLIO VS. THE S&P 500 COMPOSITE STOCK PRICE INDEX, THE LEHMAN
BROTHERS INTERMEDIATE GOVERNMENT/CORPORATE BOND INDEX AND THE COMPOSITE INDEX
- --------------------------------------------------------------------------------
__.__ Balanced Portfolio
- --.-- S&P 500
.-.x. Lehman Brothers Intermediate Government/Corporate Bond Index
..+-- Composite Index*
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------
Balanced Portfolio S&P 500 Lehman Brothers Intermediate Government Corp Composite Index
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
7/1/93 $10,000 $10,000 $10,000 $10,000
- ---------------------------------------------------------------------------------------------------------
11/30/93 $10,312 $10,372 $10,195 $10,290
- ---------------------------------------------------------------------------------------------------------
11/30/94 $ 9,821 $10,485 $10,009 $10,304
- ---------------------------------------------------------------------------------------------------------
11/30/95 $11,807 $14,365 $11,462 $12,981
- ---------------------------------------------------------------------------------------------------------
11/30/96 $13,468 $18,369 $12,130 $15,261
- ---------------------------------------------------------------------------------------------------------
11/30/97 $15,797 $23,607 $12,897 $18,052
- ---------------------------------------------------------------------------------------------------------
11/30/98 $18,466 $29,178 $14,038 $21,166
- ---------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Average Annual
Total Returns
For Periods Ended Class A S&P 500 Lehman Composite
November 30, 1998: Shares Index Brothers Index
<S> <C> <C> <C> <C>
One Year: 16.90% 23.60% 8.85% 17.25%
- -----------------------------------------------------------------------------------------
Five Year: 12.36% 17.12% 6.61% 15.52%
- -----------------------------------------------------------------------------------------
Since Commencement
on 7/1/93: 11.98% 21.84% 6.46% 14.83%
</TABLE>
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------
Balanced Portfolio S&P 500 Composite Index Lehman Brothers
- ----------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1/2/96 $10,000 $10,000 $10,000 $10,000
- ----------------------------------------------------------------------------
11/30/96 $11,272 $12,546 $11,582 $10,473
- ----------------------------------------------------------------------------
11/30/97 $13,188 $16,124 $13,701 $11,135
- ----------------------------------------------------------------------------
11/30/98 $15,317 $19,968 $16,086 $12,120
- ----------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Average Annual
Total Returns
For Periods Ended Class C S&P 500 Lehman Composite
November 30, 1998: Shares Index Brothers Index
<S> <C> <C> <C> <C>
One Year: 16.61% 23.60% 8.85% 17.25%
- -----------------------------------------------------------------------------------------
Since Commencement
on 12/29/95: 15.86% 26.69% 6.81% 17.66%
</TABLE>
11
<PAGE>
Northern Institutional Funds
Equity Portfolios
- --------------------------------------------------------------------------------
Management's Discussion of Portfolio Performance
Northern Institutional Balanced Portfolio--Continued
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN NORTHERN INSTITUTIONAL
BALANCED PORTFOLIO VS. THE S&P 500 COMPOSITE STOCK PRICE INDEX, THE LEHMAN
BROTHERS INTERMEDIATE GOVERNMENT/CORPORATE BOND INDEX AND THE COMPOSITE INDEX
- ------- Balanced Portfolio
___.___ S&P 500
- ---X--- Lehman Brothers Intermediate Government/Corporate
Bond Index
- ---+--- Composite Index
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------
Balanced Portfolio Lehman Brothers S&P 500 Composite Index
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
2/20/96 $10,000 $10,000 $10,000 $10,000
- ------------------------------------------------------------------------------------------------------------------
11/30/96 $11,055 $10,455 $12,026 $11,227
- ------------------------------------------------------------------------------------------------------------------
11/30/97 $12,914 $11,116 $15,456 $13,281
- ------------------------------------------------------------------------------------------------------------------
11/30/98 $15,038 $12,100 $19,103 $15,572
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Average Annual
Total Returns S&P
For Periods Ended Class D 500 Lehman Composite
November 30, 1998: Shares Index Brothers Index
<S> <C> <C> <C> <C>
One Year: 16.45% 23.60% 8.85% 17.25%
- -----------------------------------------------------------------------------------------------
Since Commencement
on 2/20/96: 15.82% 26.24% 7.10% 17.28%
</TABLE>
*The Composite Index consists of 55%, 40% and 5% of the S&P 500, The Lehman
Brothers Intermediate Government/Corporate Bond Index and 91-Day Treasury
Bills, respectively.
12
<PAGE>
- --------------------------------------------------------------------------------
Northern Institutional Diversified Growth Portfolio
The Portfolio posted solid results for the fiscal year, outperforming the S&P
500 Index. This strong performance primarily was due to overweighted positions
in large-cap and high-quality securities and those with a high degree of
earnings consistency. We expected that the growing uncertainty in world markets
would create a general flight to quality, which would favor these securities.
In addition, we avoided companies with a high degree of foreign exposure and
those sensitive to economic factors, which helped performance. We also
maintained our low turnover strategy, which proved successful given the
heightened market volatility.
As the year progressed, we lowered the Portfolio's risk profile by increasing
diversification. This offered better insulation from specific losses in any one
issue.
Going forward, the Portfolio will continue to emphasize consistent growth
areas, such as healthcare. The Portfolio is positioned for a slowing economy
and lower interest rates--an environment in which high-quality companies will
continue to be the preferred haven for most investors. We are, however, finding
some of these opportunities in areas other than the large-cap companies that
have dominated the performance scene for the past few years.
Jon Brorson
Portfolio Manager
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN NORTHERN INSTITUTIONAL
DIVERSIFIED GROWTH PORTFOLIO VS. THE S&P 500 COMPOSITE STOCK PRICE INDEX
--.-- Diversified Growth Portfolio - - . - - S&P 500 Index
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------
Diversified Growth Portfolio S&P 500
- -----------------------------------------------------------------------
<S> <C> <C>
1/11/93 $10,000 $10,000
- -----------------------------------------------------------------------
11/30/93 $10,738 $11,041
- -----------------------------------------------------------------------
11/30/94 $9,988 $11,161
- -----------------------------------------------------------------------
11/30/95 $12,441 $15,291
- -----------------------------------------------------------------------
11/30/96 $15,032 $19,554
- -----------------------------------------------------------------------
11/30/97 $19,100 $25,130
- -----------------------------------------------------------------------
11/30/98 $23,918 $31,060
- -----------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Average Annual Total
Returns For Periods Ended Class A S&P 500
November 30, 1998: Shares Index
<S> <C> <C>
One Year: 25.22% 23.60%
- --------------------------------------------------------------------------------------------
Five Year: 17.37% 22.98%
- --------------------------------------------------------------------------------------------
Since Commencement on 1/11/93: 15.96% 21.22%
</TABLE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------
<S> <C> <C>
Diversified Growth Portfolio S&P 500
- -------------------------------------------------------------------
9/14/94 $10,000 $10,000
- -------------------------------------------------------------------
11/30/94 $9,486 $9,738
- -------------------------------------------------------------------
11/30/95 $11,781 $13,341
- -------------------------------------------------------------------
11/30/96 $14,183 $17,060
- -------------------------------------------------------------------
11/30/97 $17,956 $21,925
- -------------------------------------------------------------------
11/30/98 $22,396 $27,099
- -------------------------------------------------------------------
</TABLE>
la
<TABLE>
<CAPTION>
Average Annual Total
Returns For Periods Ended Class D S&P 500
November 30, 1998: Shares Index
<S> <C> <C>
One Year: 24.73% 23.60%
- --------------------------------------------------------------------------------------------
Since Commencement on 9/14/94: 21.09% 26.69%
</TABLE>
13
<PAGE>
Northern Institutional Funds
Equity Portfolios
- --------------------------------------------------------------------------------
Management's Discussion of Portfolio Performance
Northern Institutional Equity Index Portfolio
For the fiscal year ending November 30, 1998, large-capitalization stocks, as
represented by the S&P 500 Index, returned 23.60%. Large-cap stocks continued
to outperform small-cap stocks, as measured by the Russell 2000 Index. For the
fiscal year, the Russell 2000 Index declined 6.56%.
As designed, the Portfolio's fiscal-year return closely tracked that of the
S&P 500 Index. The slight difference was due primarily to expenses charged to
the Portfolio and the restriction against investing each day's net admissions
until the following morning.
There were 48 additions and deletions to the Index during the fiscal year,
all of which were incorporated into the Portfolio (with the exception of
Northern Trust Corporation).
Going forward, we will continue to follow a passive strategy designed to
provide returns that closely track those of the S&P 500 Index.
Susan French
Portfolio Manager
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN NORTHERN INSTITUTIONAL
EQUITY INDEX PORTFOLIO VS. THE S&P 500 COMPOSITE STOCK PRICE INDEX
--.-- Equity Index Portfolio - - . - - S&P 500 Index
<TABLE>
<CAPTION>
- -----------------------------------------------------------
Equity Index Portfolio S&P 500
- -----------------------------------------------------------
<S> <C> <C>
1/11/93 $10,000 $10,000
- -----------------------------------------------------------
11/30/93 $11,008 $11,041
- -----------------------------------------------------------
11/30/94 $11,104 $11,161
- -----------------------------------------------------------
11/30/95 $15,168 $15,291
- -----------------------------------------------------------
11/30/96 $19,344 $19,554
- -----------------------------------------------------------
11/30/97 $24,747 $25,130
- -----------------------------------------------------------
11/30/98 $30,536 $31,060
- -----------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Average Annual Total
Returns For Periods Ended Class A S&P 500
November 30, 1998: Shares Index
<S> <C> <C>
One Year: 23.39% 23.60%
- --------------------------------------------------------------------------------------------
Five Year: 22.64% 22.98%
- --------------------------------------------------------------------------------------------
Since Commencement on 1/11/93: 20.87% 21.62%
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------
Equity Index Portfolio S&P 500
- -----------------------------------------------------------
<S> <C> <C>
1/11/93 $10,000 $10,000
- -----------------------------------------------------------
11/30/95 $10,394 $10,402
- -----------------------------------------------------------
11/30/96 $13,225 $13,302
- -----------------------------------------------------------
11/30/97 $16,881 $17,095
- -----------------------------------------------------------
11/30/98 $20,779 $21,129
- -----------------------------------------------------------
</TABLE>
[LEHMAN PERFORMANCE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Average Annual Total
Returns For Periods Ended Class C S&P 500
November 30, 1998: Shares Index
<S> <C> <C>
One Year: 23.09% 23.60%
- --------------------------------------------------------------------------------------------
Since Commencement on 9/28/95: 25.90% 26.62%
</TABLE>
14
<PAGE>
- --------------------------------------------------------------------------------
Northern Institutional Equity Index Portfolio--Continued
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN NORTHERN INSTITUTIONAL
FUND EQUITY INDEX PORTFOLIO VS. THE S&P 500 COMPOSITE STOCK PRICE INDEX
- ------------------------------------------------------
- --.-- Equity Index Portfolio --.-- S&P 500 Index
- ------------------------------------------------------
<TABLE>
<CAPTION>
- --------------------------------------------------------------
Equity Index Portfolio S&P 500
- --------------------------------------------------------------
<S> <C> <C>
9/14/94 $10,000 $10,000
- --------------------------------------------------------------
11/30/94 $ 9,732 $ 9,738
- --------------------------------------------------------------
11/30/95 $13,255 $13,341
- --------------------------------------------------------------
11/30/96 $16,860 $17,060
- --------------------------------------------------------------
11/30/97 $21,488 $21,925
- --------------------------------------------------------------
11/30/98 $26,408 $27,099
- --------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Average Annual Total
Returns For Periods Ended Class D S&P 500
November 30, 1998: Shares Index
<S> <C> <C>
One Year: 22.90% 23.60%
- --------------------------------------------------------------------------------------------
Since Commencement on 9/14/94: 25.92% 26.69%
</TABLE>
15
<PAGE>
Northern Institutional Funds
Equity Portfolios
- --------------------------------------------------------------------------------
Management's Discussion of Portfolio Performance
Northern Institutional Focused Growth Portfolio
Throughout the fiscal year, we remained focused on owning the largest-cap
stocks that fit our quality growth philosophy. We had determined that the
market was likely to continue favoring these stocks, so we continued to
emphasize them in the Portfolio. This strategy resulted in a fiscal-year return
that exceeded that of the S&P 500 Index.
Among the Portfolio's top performers were Home Depot, Walgreen's, Staples,
Cisco, and Warner Lambert--holdings that fit our focus on large, domestic,
defensive stocks. In addition, our emphasis on health care and consumer non-
durables and our shift away from cyclical industries contributed to the strong
performance.
We maintained a relatively stable portfolio composition throughout the year.
The most significant changes involved reducing the Portfolio's concentration in
technology and financials to more neutral positions and increasing exposure to
health care and consumer stocks. In addition, we recently increased our
exposure to mid-cap stocks, as we believe there are attractive opportunities in
this market segment.
Jon Brorson
Portfolio Manager
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN NORTHERN INSTITUTIONAL
FOCUSED GROWTH PORTFOLIO VS. THE S&P 500 COMPOSITE STOCK PRICE INDEX
- -----------------------------------------------------------
___.___ Focused Growth Portfolio ---.--- S&P 500 Index
- -----------------------------------------------------------
<TABLE>
<CAPTION>
- -------------------------------------------------
Focused Growth S&P 500
- -------------------------------------------------
<S> <C> <C>
7/1/93 $10,000 $10,000
- -------------------------------------------------
11/30/93 $10,433 $10,372
- -------------------------------------------------
11/30/94 $ 9,791 $10,485
- -------------------------------------------------
11/30/95 $12,570 $14,365
- -------------------------------------------------
11/30/06 $14,811 $18,369
- -------------------------------------------------
11/30/97 $18,816 $23,607
- -------------------------------------------------
11/30/98 $23,338 $29,179
- -------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Average Annual Total
Returns For Periods Ended Class A S&P 500
November 30, 1998: Shares Index
<S> <C> <C>
One Year: 24.03% 23.60%
- ----------------------------------------------------------------------------------------------
Five Year: 17.47% 22.98%
- ----------------------------------------------------------------------------------------------
Since Commencement on 7/1/93: 16.92% 21.84%
</TABLE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------
Focused Growth S&P 500 Index
- --------------------------------------------------------------
<S> <C> <C>
6/14/96 $10,000 $10,000
- --------------------------------------------------------------
11/30/96 $10,751 $11,481
- --------------------------------------------------------------
11/30/97 $13,627 $14,756
- --------------------------------------------------------------
11/30/98 $16,860 $18,237
- --------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Average Annual Total
Returns For Periods Ended Class C S&P 500
November 30, 1998: Shares Index
<S> <C> <C>
One Year: 23.73% 23.60%
- --------------------------------------------------------------------------------------------
Since Commencement on 6/14/96: 23.63% 27.60%
</TABLE>
16
<PAGE>
- --------------------------------------------------------------------------------
Northern Institutional Focused Growth Portfolio--Continued
COMPARISON OF CHANGE IN VALUE OF $10,000
INVESTMENT IN NORTHERN INSTITUTIONAL
FOCUSED GROWTH PORTFOLIO VS. THE S&P
500 COMPOSITE STOCK PRICE INDEX
__.__ Focused Growth Portfolio --.-- S&P 500 Index
<TABLE>
<CAPTION>
- -----------------------------------------------------------
Focused Growth S&P 500
- -----------------------------------------------------------
<S> <C> <C>
12/8/94 $10,000 $10,000
- -----------------------------------------------------------
11/30/95 $13,097 $13,767
- -----------------------------------------------------------
11/30/96 $15,378 $17,605
- -----------------------------------------------------------
11/30/97 $19,458 $22,626
- -----------------------------------------------------------
11/30/98 $24,050 $27,966
- -----------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Average Annual Total
Returns For Periods Ended Class D S&P 500
November 30, 1998: Shares Index
<S> <C> <C>
One Year: 23.60% 23.60%
- --------------------------------------------------------------------------------------------
Since Commencement on 12/8/94: 24.66% 29.48%
</TABLE>
17
<PAGE>
Northern Institutional Funds
Equity Portfolios
- --------------------------------------------------------------------------------
Management's Discussion of Portfolio Performance
Northern Institutional International Equity Index Portfolio
International stocks, represented by the Morgan Stanley Capital International
Europe, Australia, and Far East (EAFE) Index, returned 16.45% (in U.S. dollars,
net of foreign withholding taxes) for the fiscal year. After a significant
correction of -10.63% during the third fiscal quarter ending in August, the
EAFE Index rebounded during the fourth quarter by returning 12.59%. Compared to
large-capitalization domestic stocks, represented by the S&P 500 Index, the
EAFE Index underperformed by 6.29 percentage points.
As designed, the Portfolio's performance closely tracked that of the EAFE
Index during the fiscal year. To the extent that cash flows and market
conditions allow, each security of the Index is held in its proper weight in
the Portfolio in an attempt to achieve the total return of the Index (after
expenses). The Portfolio is rebalanced when needed and is realigned annually in
tandem with the Index.
A significant change occurred on September 30, 1998, when Morgan Stanley
Capital International removed Malaysia from the EAFE Index in response to the
Malaysian government's capital restrictions imposed earlier in the month. After
this was announced, we made the corresponding changes to the Portfolio.
Going forward, we will continue to practice a passive investment strategy as
we seek returns that approximate those of the EAFE Index.
Andrew C. Buchner
Portfolio Manager
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN NORTHERN INSTITUTIONAL
INTERNATIONAL EQUITY INDEX PORTFOLIO VS. THE MORGAN STANLEY CAPITAL
INTERNATIONAL EUROPE, AUSTRALIA, AND FAR EAST (EAFE) INDEX
___.___ International Equity Index ---.--- EAFE Index
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
International Equity Index EAFE
- --------------------------------------------------------------------------------
<S> <C> <C>
4/1/97 $10,000 $10,000
- ------------------------------------------------------------------------------
11/30/97 $10,545 $10,440
- ------------------------------------------------------------------------------
11/30/98 $12,180 $12,157
- --------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Average Annual Total
Returns For Periods Ended Class A EAFE
November 30, 1998: Shares Index
<S> <C> <C>
One Year: 15.50% 16.45%
- ---------------------------------------------------------------------------------------------
Since Commencement on 4/1/97: 12.57% 12.44%
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------
International Equity Index EAFE
- -----------------------------------------------------------------------------
<S> <C> <C>
10/5/98 $10,000 $10,000
- -----------------------------------------------------------------------------
11/30/98 $10,236 $10,304
- -----------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Aggregate Total
Return For Period Ended Class D EAFE
November 30, 1998: Shares Index
<S> <C> <C>
Commencement on 10/5/98: 21.15% 16.14%
</TABLE>
18
<PAGE>
- --------------------------------------------------------------------------------
Northern Institutional International Growth Portfolio
Our cautious stance toward the Asian markets helped push the Portfolio's
performance well ahead of the benchmark for the fiscal year. We believed that
the real magnitude of the Asian financial crisis was much greater than the
consensus believed. As a result, we kept the Portfolio heavily underweighted in
Asia and the emerging markets and overweighted in Europe.
Within the European markets, we focused on financial, pharmaceutical and
telecommunications stocks. We expected these sectors to benefit from lower
interest rates and a flight to safety and high-quality growth stocks.
In the second half of the fiscal year, we shifted our focus toward a more
defensive stance in Europe. We also modestly increased the Portfolio's
weighting in Japan and Southeast Asia to take advantage of some attractively
priced stocks.
We believe that the consensus outlook for economic growth in 1999 is too
pessimistic considering that the world's central bankers have cut short-term
interest rates more than 50 times in less than three months. As such, we plan
to remain overweighted in Europe and maintain below-average exposure to Asia.
In Europe, we favor large-capitalized, high-quality stocks in the
pharmaceutical, telecommunications and technology sectors. In Japan, our focus
is on defensive domestic issues and technology stocks.
Robert LaFleur
Portfolio Manager
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN NORTHERN INSTITUTIONAL
INTERNATIONAL GROWTH PORTFOLIO VS. THE MORGAN STANLEY CAPITAL INTERNATIONAL
EUROPE, AUSTRALIA, AND FAR EAST (EAFE) INDEX
__.__ International Growth Portfolio
- --.-- EAFE Index
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------
International Growth Portfolio Lehman Brother's Interm. Gov't/Corp.
- -----------------------------------------------------------------------------------------
<S> <C> <C>
3/25/94 $10,000 $10,000
- -----------------------------------------------------------------------------------------
11/30/94 $10,211 $10,204
- -----------------------------------------------------------------------------------------
11/30/95 $ 9,974 $10,976
- -----------------------------------------------------------------------------------------
11/30/96 $10,967 $12,267
- -----------------------------------------------------------------------------------------
11/30/97 $11,429 $12,218
- -----------------------------------------------------------------------------------------
11/30/98 $13,774 $14,228
- -----------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Average Annual Total
Returns For Periods Ended Class A EAFE
November 30, 1998: Shares Index
<S> <C> <C>
One Year: 20.44% 16.45%
- ----------------------------------------------------------------------------------------------
Since Commencement on 3/28/94: 7.08% 7.82%
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------
International Growth Portfolio EAFE Index
- -----------------------------------------------------------------------------------------
<S> <C> <C>
11/16/94 $10,000 $10,000
- -----------------------------------------------------------------------------------------
11/30/94 $ 9,744 $ 9,823
- -----------------------------------------------------------------------------------------
11/30/95 $ 9,474 $10,567
- -----------------------------------------------------------------------------------------
11/30/96 $10,382 $11,809
- -----------------------------------------------------------------------------------------
11/30/97 $10,776 $11,762
- -----------------------------------------------------------------------------------------
11/30/98 $12,926 $13,696
- -----------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Average Annual Total
Returns For Periods Ended Class D EAFE
November 30, 1998: Shares Index
<S> <C> <C>
One Year: 19.91% 16.45%
- --------------------------------------------------------------------------------------------
Since Commencement on 11/16/94: 6.56% 8.10%
</TABLE>
19
<PAGE>
Northern Institutional Funds
Equity Portfolios
- --------------------------------------------------------------------------------
Management's Discussion of Portfolio Performance
Northern Institutional Small Company Index Portfolio
After falling 25.78% during the third fiscal quarter ending in August, small
company stocks, as represented by the Russell 2000 Index, rebounded during the
fourth fiscal quarter with an 18.11% return. For the fiscal year ended November
30, 1998, the Index declined 6.56%, assuming dividend reinvestment. Compared to
large-capitalization stocks, as represented by the S&P 500 Index, the Russell
2000 Index underperformed for the fiscal year by 30.16 percentage points.
As designed, the Portfolio's performance closely tracked that of the Russell
2000 Index. To the extent that cash flows and market conditions allow, each
security of the Index is held in its proportionate weight in the Portfolio in
an attempt to achieve the total return of the Index (after expenses). The
limited use of futures contracts facilitates cost-efficient, short-term equity
exposure that allows the Portfolio to be fully invested with minimal cash
balances at all times. The Portfolio is rebalanced when needed and is realigned
during the annual Index reconstitution at the beginning of every July.
Looking ahead, we will continue to manage the Portfolio in an attempt to
provide small-stock returns that closely track those of the Russell 2000 Index.
Andrew C. Buchner
Portfolio Manager
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN NORTHERN INSTITUTIONAL
SMALL COMPANY PORTFOLIO VS. THE RUSSELL 2000 INDEX
__.__ Small Company Portfolio
- --.-- Russell 2000 Index
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
Small Company Portfolio Lehman Brother's Interm. Gov/Corp.
- -------------------------------------------------------------------------------
<S> <C> <C>
1/11/93 $10,000 $10,000
- -------------------------------------------------------------------------------
11/30/93 $11,409 $11,515
- -------------------------------------------------------------------------------
11/30/94 $11,233 $11,363
- -------------------------------------------------------------------------------
11/30/95 $14,352 $14,576
- -------------------------------------------------------------------------------
11/30/96 $16,642 $16,976
- -------------------------------------------------------------------------------
11/30/97 $20,480 $20,921
- -------------------------------------------------------------------------------
11/30/98 $19,042 $19,549
- -------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Average Annual Total
Returns For Periods Ended Class A Russell 2000
November 30, 1998: Shares Index
<S> <C> <C>
One Year: -7.02% -6.56%
- -------------------------------------------------------------------------------------------
Five Year: 10.79% 11.16%
- -------------------------------------------------------------------------------------------
Since Commencement on 1/11/93: 11.55% 12.05%
</TABLE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
Small Company Portfolio Russell 2000
- -------------------------------------------------------------------------------
<S> <C> <C>
1/8/98 $10,000 $10,000
- -------------------------------------------------------------------------------
11/30/98 $ 9,409 $ 9,259
- -------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Aggregate Total
Return For Period Ended Class C Russell 2000
November 30, 1998: Shares Index
<S> <C> <C>
Since Commencement on 1/8/98: -6.54% -8.23%
</TABLE>
20
<PAGE>
- --------------------------------------------------------------------------------
Northern Institutional Small Company Index Portfolio--Continued
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN NORTHERN INSTITUTIONAL
SMALL COMPANY PORTFOLIO VS. THE RUSSELL 2000 INDEX
___.___ Small Company Portfolio
---.--- Russell 2000 Index
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------
Small Company Portfolio Russell 2000
- -------------------------------------------------------------------------------------------
<S> <C> <C>
12/30/94 $10,000 $10,000
- -------------------------------------------------------------------------------------------
11/30/95 $13,162 $13,263
- -------------------------------------------------------------------------------------------
11/30/96 $15,295 $15,447
- -------------------------------------------------------------------------------------------
11/30/97 $18,764 $19,036
- -------------------------------------------------------------------------------------------
11/30/98 $17,342 $17,787
- -------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Average Annual
Total Returns
For Periods Ended Class D Russell 2000
November 30, 1998: Shares Index
<S> <C> <C>
One Year: -7.58% -6.56%
- -------------------------------------------------------------------------------------------------
Since Commencement
on 12/8/94: 14.83% 15.56%
</TABLE>
21
<PAGE>
[THIS PAGE INTENTIONALLY LEFT BLANK]
22
<PAGE>
Northern Institutional Funds
Fixed Income Portfolios
- --------------------------------------------------------------------------------
Statements of Investments
November 30, 1998
(All amounts in thousands)
<TABLE>
<CAPTION>
Description
- -------------------------------------------------------------------
Principal Maturity
Amount Rate Date Value
- -------------------------------------------------------------------
Bond Portfolio
<C> <S> <C> <C>
ASSET-BACKED SECURITIES--12.0%
Automotive--5.1%
Banc One Auto
Grantor Trust,
Series 1997-B, Class
A
$10,329 6.29% 7/20/04 $10,455
WFS Financial Owner
Trust,
Series 1997-A, Class
A-3
7,680 6.50 9/20/01 7,766
Series 1997-D, Class
A-3
16,000 6.25 3/20/02 16,140
-------
34,361
-------
Home Equity Loans--4.5%
Contimortgage Home
Equity Loan Trust,
Interest Only
Stripped Security,
Series 1998-1, Class
A10I
-- 6.50 9/15/00 10,550
Contimortgage Net
Interest Margin
Notes, Series 1998-
A, Class A(/1/)
6,851 7.92 3/16/28 6,740
IMC Excess Cashflow
Securities Trust,
Series 1997-A, Class
A(/1/)
9,333 7.41 11/26/28 8,889
The Money Store
Trust, Series 1997-
1(/1/)
3,744 7.36 5/16/01 3,743
-------
29,922
-------
Other--2.4%
California
Infrastructure &
Economic
Development, Series
1997-1, Class A4
15,785 6.22 3/25/04 16,258
- -------------------------------------------------------------------
TOTAL ASSET-BACKED SECURITIES
(Cost $84,124) $80,541
- -------------------------------------------------------------------
COLLATERALIZED MORTGAGE OBLIGATIONS--
7.9%
American Southwest
Financial Securities
Corp., Series 1996
FHA-1, Class A-1
$ 41 6.675% 11/25/38 $ 41
Delta Funding Corp.,
Interest Only
Stripped Security,
Series 1991-1, Class
A-4(/1/)
-- 18.00 1/1/06 9
Donaldson, Lufkin, &
Jenrette
Mortgage Acceptance
Corp.,
Adjustable Rate,
Interest Only
Stripped Security,
Series 1995-QE10
-- 6.814 11/25/25 445
Donaldson, Lufkin, &
Jenrette
Mortgage Acceptance
Corp.,
Series 1994-Q8,
Class 2-A1
3,505 7.25 5/25/24 3,551
</TABLE>
<TABLE>
<CAPTION>
Description
- -------------------------------------------------------------------
Principal Maturity
Amount Rate Date Value
- -------------------------------------------------------------------
<S> <C> <C> <C>
First Union-Lehman
Brothers-Bank of
America Commercial
Mortgage Trust,
Series 1998-C2,
Class A-2
$ 11,840 6.50% 5/15/07 $ 12,225
Lehman FHA Title
Loan Trust,
Interest Only
Stripped Security,
Series 1996-2, Class
S
-- 0.586 5/25/17 1,898
Morgan Stanley
Capital I,
Series 1998-WF1,
Class A2
20,000 6.55 12/15/07 20,502
PNC Mortgage
Securities Corp.,
Series 1996-PR1,
Class A(/1/)
7,387 5.85 4/28/27 7,673
Residential Asset
Securitization
Trust,
Series 1997-A8,
Class A-3
6,354 7.00 10/25/27 6,354
- -------------------------------------------------------------------
TOTAL COLLATERALIZED MORTGAGE
OBLIGATIONS (Cost $52,619) $ 52,698
- -------------------------------------------------------------------
CORPORATE AND FOREIGN GOVERNMENT
BONDS--17.3%
Beverages--2.5%
Coca-Cola Co.
$ 14,935 6.70% 10/15/36 $ 16,421
--------
Insurance--3.3%
Anthem
Insurance(/1/)
6,000 9.00 4/1/27 6,485
Lumberman's Mutual Casualty
Co.
7,050 9.15 7/1/26 8,300
4,830 8.30 12/1/37 5,153
1,960 8.45 12/1/97 2,007
--------
21,945
--------
Retail--2.3%
Penney (J.C.) & Co.,
Inc.
15,000 6.90 8/15/26 15,507
--------
Sanitary Services--2.4%
WMX Technologies,
Inc.(/1/)
15,300 7.10 8/01/26 16,241
--------
Sovereign--6.0%
Asian Development
Bank
20,360 6.375 10/1/28 22,126
Quebec (Province
of), Canada
Medium-Term Note
15,450 7.22 7/22/36 17,907
--------
40,033
--------
Transportation Services--0.8%
Burlington Northern
Santa Fe Corp.
5,000 6.53 7/15/37 5,121
- -------------------------------------------------------------------
TOTAL CORPORATE AND FOREIGN
GOVERNMENT BONDS (Cost
$110,560) $115,268
- -------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
23
<PAGE>
Northern Institutional Funds
Fixed Income Portfolios
- --------------------------------------------------------------------------------
Statements of Investments
November 30, 1998
(All amounts in thousands)
<TABLE>
<CAPTION>
Description
- -------------------------------------------------------
Principal Maturity
Amount Rate Date Value
- -------------------------------------------------------
Bond Portfolio--Continued
<C> <S> <C> <C>
U.S. GOVERNMENT AGENCIES--10.9%
COLLATERALIZED MORTGAGE OBLIGATIONS--
1.1%
Fannie Mae REMIC Trust--0.8%
Series 1996-M4,
Class A
$ 2,277 7.75% 3/17/17 $ 2,343
Series 1992-73,
Class G
3,111 7.50 4/25/21 3,128
--------
Fannie Mae REMIC Trust 5,471
--------
Interest Only Stripped Securi-
ties--0.3%
Series 278, Class 2
-- 1.252 8/01/25 462
Series 1997-20,
Class IO
-- 1.84 3/25/27 1,532
--------
1,994
--------
Fannie Mae REMIC Trust
Principal Only Stripped Secu-
rities--0.0%
Series 1994-9, Class
G
215 5.15 11/25/23 207
--------
MORTGAGE-BACKED SECURITIES--
9.8%
Fannie Mae--4.8%
Pool #452480
$ 32,623 6.00% 11/1/28 $ 32,195
--------
Freddie Mac--5.0%
Pool #252649
1 6.50 6/1/04 1
Pool #C18118
16,004 6.00 11/1/28 15,804
Pool #G00767
16,970 7.50 8/1/27 17,426
--------
33,231
- -------------------------------------------------------
TOTAL U.S. GOVERNMENT AGENCIES
(Cost $75,573) $ 73,098
- -------------------------------------------------------
U.S. GOVERNMENT OBLIGATIONS--
40.2%
U.S. Treasury Bonds--19.7%
$ 92,600 7.125% 2/15/23 $114,983
15,000 6.00 2/15/26 16,477
--------
131,460
--------
U.S. Treasury Inflation Index
Notes--5.0%
33,555 3.625 1/15/08 33,702
--------
U.S. Treasury Notes--15.5%
34,415 6.625 7/31/01 36,120
58,795 7.50 2/15/05 67,348
--------
103,468
- -------------------------------------------------------
TOTAL U.S. GOVERNMENT OBLIGA-
TIONS
(Cost $256,297) $268,630
- -------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Description
- --------------------------------------------------------
Shares/
Principal Maturity
Amount Rate Date Value
- --------------------------------------------------------
<C> <S> <C> <C>
PREFERRED STOCKS--2.8%
Agency--2.2%
15,000 Home Ownership
Funding Corp. $ 14,614
Real Estate--0.6%
4,600 Tier One Properties,
Inc. 4,411
- --------------------------------------------------------
TOTAL PREFERRED STOCKS (Cost
$19,600) $ 19,025
- --------------------------------------------------------
FLOATING RATE BANK NOTES--3.9%
Lloyds Bank PLC
$14,950 6.00% 12/15/98 $ 12,355
Midland Bank PLC
2,500 6.00 12/29/98 1,914
National Westminster
Bank
15,300 5.375 2/26/99 12,113
- --------------------------------------------------------
TOTAL FLOATING RATE BANK NOTES
(Cost $28,032) $ 26,382
- --------------------------------------------------------
SHORT-TERM INVESTMENT--3.6%
Societe Generale,
Paris
$23,771 5.375% 12/1/98 $ 23,771
- --------------------------------------------------------
TOTAL SHORT-TERM INVESTMENT
(Cost $23,771) $ 23,771
- --------------------------------------------------------
TOTAL INVESTMENTS--98.6%
(Cost $650,576) $659,413
- --------------------------------------------------------
Other assets, less liabili-
ties--1.4% 9,593
- --------------------------------------------------------
NET ASSETS--100.0% $669,006
- --------------------------------------------------------
- --------------------------------------------------------
</TABLE>
(/1/)At November 30, 1998, the Portfolio owned restricted securities valued at
approximately $49,780 (7.4% of net assets), with an aggregate cost basis of
$49,357. These securities may not be publicly sold without registration under
the Securities Act of 1933. The value of these securities is determined by
valuations supplied by a pricing service or brokers or, if not available, in
accordance with procedures established by the Trustees.
See accompanying notes to financial statements.
24
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Description
- -------------------------------------------------------------------
Principal Maturity
Amount Rate Date Value
- -------------------------------------------------------------------
Intermediate Bond Portfolio
<C> <S> <C> <C>
ASSET-BACKED SECURITIES--12.8%
Automotive--7.0%
Chevy Chase
Automobile
Receivables Trust,
Series 1997-4, Class
A
$ 377 6.25% 6/15/04 $ 380
Olympic Automobile
Receivables Trust,
Series 1996-D, Class
A-4
500 6.05 8/15/02 504
Western Financial
Owner Trust,
Series 1997-D, Class
A-3
500 6.25 3/20/02 504
Series 1998-B, A-3
750 5.95 7/20/02 754
-------
2,142
-------
Financial--2.3%
California
Infrastructure &
Economic
Development, Series
1997-1, Class A-4
690 6.22 3/25/04 711
-------
Home Equity Loans--3.5%
Advanta Mortgage
Loan Trust, Interest
Only Stripped
Security,
Series 1998-1 Class
AI0
-- 5.00 10/25/00 403
Contimortgage Net
Interest Margin
Notes, Series 1998-
A, Class A(/1/)
208 7.92 3/16/28 205
IMC Excess Cashflow
Securities Trust,
Series 1997-A, Class
A
364 7.41 11/26/28 347
The Money Store
Trust, Series 1997-
1(/1/)
84 7.36 5/16/01 85
-------
1,040
- -------------------------------------------------------------------
TOTAL ASSET-BACKED SECURITIES
(Cost $4,016) $ 3,893
- -------------------------------------------------------------------
COLLATERALIZED MORTGAGE OBLIGATIONS--
7.2%
First Union-Lehman
Brothers-Bank of
America Commercial
Mortgage Trust,
Series 1998-C1,
Class A-2
$ 500 6.56% 11/18/08 $ 516
GE Capital Mortgage
Services, Inc.,
Series 1997-5, Class
A2
500 7.50 6/25/27 509
Morgan Stanley
Capital I,
Series 1998-WF1,
Class A2
355 6.55 12/15/07 364
Mortgage Capital
Funding,
Series 1998-MC1,
Class A2
540 7.00 1/18/08 567
Residential Asset
Securitization
Trust,
Series 1997-A8,
Class A-3
258 7.00 10/25/27 258
- -------------------------------------------------------------------
TOTAL COLLATERALIZED MORTGAGE
OBLIGATIONS (Cost $2,169) $ 2,214
- -------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Description
- --------------------------------------------------------------------
Principal Maturity
Amount Rate Date Value
- --------------------------------------------------------------------
<C> <S> <C> <C>
CORPORATE BONDS--16.0%
Beverages--4.0%
Coca-Cola (The) Co.
$1,100 6.70% 10/15/36 $ 1,209
--------
Diversified Financial Servic-
es--3.3%
CIT Group Holdings,
Inc.
1,000 5.85 5/26/00 1,006
--------
Environmental Control--1.5%
WMX Technologies,
Inc.
440 7.10 8/1/26 467
--------
Insurance--2.4%
Lumberman's Mutual
Casualty Co.(/1/)
545 9.15 7/1/26 642
105 8.45 12/1/97 108
--------
750
--------
Retail--1.4%
Penney (J.C.) & Co.,
Inc.
400 7.40 4/1/37 443
--------
Transportation--3.4%
Burlington Northern
Santa Fe Corp.
1,000 6.53 7/15/37 1,024
- -------------------------------------------------------------------
TOTAL CORPORATE BONDS (Cost
$4,835) $ 4,899
- -------------------------------------------------------------------
U.S. GOVERNMENT AGENCIES--8.7%
Fannie Mae--4.4%
Pool #440700
$ 1,364 6.00% 11/01/28 $ 1,346
--------
Freddie Mac--4.3%
Pool #G00767
676 7.50 8/01/27 694
Pool #C18079
618 6.00 11/1/28 610
--------
1,304
- -------------------------------------------------------------------
TOTAL U.S. GOVERNMENT AGENCIES
(Cost $2,649) $ 2,650
- -------------------------------------------------------------------
U.S. GOVERNMENT OBLIGATIONS--
42.0%
U.S. Treasury Inflation Index--
4.4%
$ 1,350 3.625% 1/15/08 $ 1,356
--------
U.S. Treasury Notes--37.6%
1,250 5.75 8/15/03 1,307
3,350 7.50 2/15/05 3,837
6,000 6.625 7/31/01 6,297
--------
11,441
- -------------------------------------------------------------------
TOTAL U.S. GOVERNMENT OBLIGA-
TIONS
(Cost $12,785) $ 12,797
- -------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
25
<PAGE>
Northern Institutional Funds
Fixed Income Portfolios
- --------------------------------------------------------------------------------
Statements of Investments
November 30, 1998
(All amounts in thousands)
<TABLE>
<CAPTION>
Description
- -----------------------------------------------------------
Principal Maturity
Amount Rate Date Value
- -----------------------------------------------------------
Intermediate Bond Portfolio (Continued)
<C> <S> <C> <C>
FLOATING RATE BANK NOTES--4.0%
Lloyds Bank PLC
$ 750 6.00% 12/15/98 $ 620
National Westminster
Bank
750 5.375 11/30/49 594
- ------------------------------------------------------------
TOTAL FLOATING RATE BANK NOTES
(Cost $1,359) $ 1,214
- ------------------------------------------------------------
SHORT-TERM INVESTMENTS--12.1%
Federal Home Loan
Bank
$ 2,457 5.45% 12/1/98 $ 2,457
Societe Generale,
Paris
1,213 5.375 12/1/98 1,213
- -------------------------------------------------------------
TOTAL SHORT-TERM INVESTMENTS
(Cost $3,670) $ 3,670
- -----------------------------------------------------------
TOTAL INVESTMENTS--102.8%
(Cost $31,483) $31,337
- -----------------------------------------------------------
Liabilities, less other as-
sets--(2.8)% (857)
- -----------------------------------------------------------
NET ASSETS--100.0% $30,480
===========================================================
</TABLE>
(/1/)At November 30, 1998, the Portfolio owned restricted securities valued at
approximately $1,040 (3.4% of net assets), with an aggregate cost basis of
$1,064. These securities may not be publicly sold without registration under
the Securities Act of 1933. The value of these securities is determined by
valuations supplied by a pricing service or brokers or, if not available, in
accordance with procedures established by the Trustees.
See accompanying notes to financial statements.
26
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Description
- ------------------------------------------------------
Local
Currency/
Principal Maturity
Amount Rate Date Value
- ------------------------------------------------------
International Bond Portfolio
<C> <S> <C> <C>
DEBT OBLIGATIONS--96.7%
Australian Dollar--2.5%
Commonwealth of
Australia
980 10.00% 10/15/02 $ 731
-------
Belgian Franc--2.3%
Kingdom of Belgium
18,275 7.50 7/29/08 657
-------
British Pound Sterling--16.4%
Abbey National PLC
825 6.00 8/10/99 1,356
BAA PLC
525 7.875 2/10/07 975
Lloyds Bank PLC
800 7.375 3/11/04 1,396
Treasury of Great
Britain
400 8.00 6/7/21 979
-------
4,706
-------
Canadian Dollar--2.6%
Province of Ontario
1,050 7.25 9/27/05 752
-------
Danish Krone--6.7%
Kingdom of Denmark
10,100 8.00 3/15/06 1,926
-------
European Currency Unit--4.9%
Electricite de
France
1,214 3.75 10/28/03 1,406
-------
German Mark--15.6%
Federal Republic of
Germany
1,795 6.25 1/4/24 1,275
LKB Global Bond
1,500 6.00 5/10/99 896
Republic of Austria
1,670 8.00 1/30/02 1,114
Republic of Finland
1,920 5.50 2/9/01 1,184
-------
4,469
-------
Italian Lira--10.2%
Republic of Italy
4,000,000 8.50 4/1/04 2,917
-------
Japanese Yen--14.5%
Asian Development
Bank
90,000 5.00 2/5/03 863
European Bank for
Reconstruction and
Development
95,000 5.875 11/26/99 817
</TABLE>
<TABLE>
<CAPTION>
Description
- ------------------------------------------------------
Local
Currency/
Principal Maturity
Amount Rate Date Value
- ------------------------------------------------------
<C> <S> <C> <C>
International Bank
for Reconstruction
and Development
100,000 4.50% 3/20/03 $ 950
Japan Development
Bank
160,000 6.50 9/20/01 1,521
-------
4,151
-------
Netherlands Guilder--1.4%
Kingdom of the
Netherlands
700 5.75 2/15/07 411
-------
Spanish Peseta--4.7%
Kingdom of Spain
120,000 11.30 1/15/02 1,022
35,000 10.00 2/28/05 323
-------
1,345
-------
Swedish Krona--2.0%
Kingdom of Sweden
3,700 10.25 5/5/03 571
-------
United States Dollar--12.9%
U.S. Treasury Bond
2,150 7.125 2/15/23 2,670
U.S. Treasury Note
900 7.50 2/15/05 1,031
-------
3,701
- ------------------------------------------------------
TOTAL DEBT OBLIGATIONS (Cost
$26,597) $27,743
- ------------------------------------------------------
SHORT-TERM INVESTMENT--0.4%
United States Dollar
Societe Generale,
Paris, France
$ 111 5.375% 12/1/98 $ 111
- ------------------------------------------------------
TOTAL SHORT-TERM INVESTMENT
(Cost $111) $ 111
- ------------------------------------------------------
TOTAL INVESTMENTS--97.1%
(Cost $26,708) $27,854
- ------------------------------------------------------
Other assets, less liabili-
ties--2.9% 846
- ------------------------------------------------------
NET ASSETS--100.0% $28,700
- ------------------------------------------------------
- ------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
27
<PAGE>
Northern Institutional Funds
Fixed Income Portfolios
- --------------------------------------------------------------------------------
Statements of Investments
November 30, 1998
(All amounts in thousands)
<TABLE>
<CAPTION>
Description
- --------------------------------------------------------
Principal Maturity
Amount Rate Date Value
- --------------------------------------------------------
Short-Intermediate Bond Portfolio
<C> <S> <C> <C>
ASSET-BACKED SECURITIES--31.8%
Automotive--9.8%
Chevy Chase
Automobile
Receivables Trust,
Series 1991-4, Class
A
$ 3,212 6.25% 6/15/04 $ 3,235
Olympic Automobile
Receivables Trust,
Interest Only
Stripped Security,
Series 1995-D, Class
I
-- 7.187 1/15/99 25
Olympic Automobile
Receivables Trust,
Series 1995-A, Class
A
833 7.875 7/15/01 839
Series 1996-D, Class
A-4
4,075 6.05 8/15/02 4,111
Western Financial
Automobile Loan
Trust, Series 1994-
4, Class A-1
248 7.10 1/1/00 249
WFS Financial Owner
Trust,
Series 1997-A, Class
A-3
4,454 6.50 9/20/01 4,504
Series 1997-D, Class
A-3
5,000 6.25 3/20/02 5,044
--------
18,007
--------
Home Equity Loans--5.8%
Contimortgage Home
Equity Loan Trust,
Interest Only
Stripped Security,
Series 1998-1, Class
A10I
-- 6.50 9/15/00 3,709
Contimortgage Net
Interest Margin
Notes, Series 1998-
A, Class A(/1/)
2,583 7.92 3/16/28 2,541
Delta Funding Home
Equity Loan Trust,
Interest Only
Stripped Security,
Series 1997-2, Class
AIO
-- 6.50 5/25/12 1,920
Lehman FHA Title I
Loan Trust,
Interest Only
Stripped Security,
Series 1995-6, Class
S
-- 0.493 11/25/16 1,130
The Money Store
Trust, Series 1997-
1(/1/)
1,377 7.36 5/16/01 1,377
--------
10,677
--------
Financial--16.2%
Associates Corp.
5,000 5.85 1/15/01 5,045
California Infrastructure
Pacific Gas & Electric,
Series 1997-1, Class A-3
7,250 6.15 6/25/02 7,354
California Infrastructure &
Economic
Development, Series 1997-1,
Class A-4
5,925 6.22 3/25/04 6,102
</TABLE>
<TABLE>
<CAPTION>
Description
- --------------------------------------------------------
Principal Maturity
Amount Rate Date Value
- --------------------------------------------------------
<C> <S> <C> <C>
IMC Excess Cashflow
Securities Trust
Series 1997-A, Class A
$ 3,098 7.41% 11/26/28 $ 2,951
MBNA Master Credit
Card Trust
5,800 5.25 2/15/06 5,798
Southern Pacific
Secured Asset Corp.,
Series 1997-2, Class
AIO
95,800 1.784 7/25/00 2,545
--------
29,795
- --------------------------------------------------------
TOTAL ASSET-BACKED SECURITIES
(Cost $63,214) $ 58,479
- --------------------------------------------------------
COLLATERALIZED MORTGAGE OBLIGATIONS--
20.5%
AAMES Mortgage
Trust,
Interest Only
Stripped Security,
Series 1997-B, Class
AIO
$ -- 5.50% 7/15/00 $ 1,472
BA Mortgage
Securities, Inc.
8,250 6.50 8/25/28 8,310
Donaldson, Lufkin &
Jenrette
Mortgage Acceptance
Corp.,
Interest Only
Stripped Security,
Series 1997-CF2,
Class CP
-- 7.43 11/15/04 5,545
Series 1994-Q8,
Class 2A1
-- 7.25 5/25/24 1,527
Financial Asset
Securitization,
Inc.,
Series 1997-NAMC,
Class FXA-3
1,619 7.35 4/25/27 1,616
GE Capital Mortgage
Services, Inc.,
Series 1994-15,
Class A-16
4,789 6.00 4/25/09 4,738
PNC Mortgage
Securities Corp.,
Series 1996-PR1,
Class A(/1/)
2,183 5.847 4/28/27 2,268
Prudential Home
Mortgage Securities
Co.,
Series 1994-1, Class
A-3
6,963 6.00 2/25/09 6,889
Residential Asset
Securitization
Trust,
Series 1997-A8,
Class A-3
2,577 7.00 10/25/27 2,577
Series 1998-A1,
Class A-6
2,970 0.00 1/1/28 2,732
- --------------------------------------------------------
TOTAL COLLATERALIZED MORTGAGE
OBLIGATIONS (Cost $39,574) $ 37,674
- --------------------------------------------------------
CORPORATE BONDS--8.9%
Brokerage Services--3.5%
Donaldson, Lufkin &
Jenrette, Inc.
Medium Term Note
$ 6,500 5.625% 2/15/16 $ 6,402
--------
Electrical Utility--2.1%
Tenaga Nasional
Berhad
4,800 7.20 4/29/07 3,958
--------
</TABLE>
See accompanying notes to financial statements.
28
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Description
- -------------------------------------------------------------------
Principal Maturity
Amount Rate Date Value
- -------------------------------------------------------------------
<C> <S> <C> <C>
Telecommunications--3.3%
Worldcom, Inc.
$ 5,900 6.125% 8/15/01 $ 6,008
- -------------------------------------------------------------------
TOTAL CORPORATE BONDS (Cost
$17,177) $ 16,368
- -------------------------------------------------------------------
U.S. GOVERNMENT AGENCIES--1.0%
COLLATERALIZED MORTGAGE OBLIGATIONS--
1.0%
Fannie Mae REMIC Trust--0.9%
Series 1996-M4,
Class A
$ 1,518 7.75% 3/17/17 $ 1,562
--------
Fannie Mae REMIC Trust
Principal Only Stripped Security--0.1%
Series 1994-9, Class
G
215 5.15 11/25/23 207
- -------------------------------------------------------------------
TOTAL U.S. GOVERNMENT AGENCIES
(Cost $1,710) $ 1,769
- -------------------------------------------------------------------
U.S. GOVERNMENT OBLIGATIONS--
34.9%
U.S. Treasury Notes--34.9%
$ 9,500 3.63% 1/15/08 $ 9,542
41,000 5.75 10/31/02 42,550
11,500 6.25 1/31/02 12,032
- -------------------------------------------------------------------
TOTAL U.S. GOVERNMENT OBLIGA-
TIONS
(Cost $62,760) $ 64,124
- -------------------------------------------------------------------
SHORT-TERM INVESTMENT--1.7%
Societe Generale,
Paris
$ 3,200 5.375% 12/1/98 $ 3,200
- -------------------------------------------------------------------
TOTAL SHORT-TERM INVESTMENT
(Cost $3,200) $ 3,200
- -------------------------------------------------------------------
TOTAL INVESTMENTS--98.8%
(Cost $187,635) $181,614
- -------------------------------------------------------------------
Other assets, less liabili-
ties--1.2% 2,209
- -------------------------------------------------------------------
NET ASSETS--100.0% $183,823
- -------------------------------------------------------------------
- -------------------------------------------------------------------
</TABLE>
(/1/)At November 30, 1998, the Portfolio owned restricted securities valued at
approximately $6,186 (3.4% of net assets), with an aggregate cost basis of
$6,183. These securities may not be publicly sold without registration under
the Securities Act of 1933. The value of these securities is determined by
valuations supplied by a pricing service or brokers or, if not available, in
accordance with procedures established by the Trustees.
See accompanying notes to financial statements.
29
<PAGE>
Northern Institutional Funds
Fixed Income Portfolios
- --------------------------------------------------------------------------------
Statements of Investments
November 30, 1998
(All amounts in thousands)
<TABLE>
<CAPTION>
Description
- ----------------------------------------------------------
Principal Maturity
Amount Rate Date Value
- ----------------------------------------------------------
U.S. Government Securities Portfolio
<C> <S> <C> <C>
U.S. GOVERNMENT AGENCIES--62.0%
COLLATERALIZED MORTGAGE OBLIGATIONS--
27.7%
Fannie Mae REMIC Trust--15.5%
Series 1998-M2,
Class CPI,
Interest Only
Stripped Security
$ -- 6.25% 2/17/02 $ 513
Series 1997-M1,
Class A
2,582 6.78 1/17/03 2,657
Series 1998-14,
Class F
64 9.20 12/25/17 65
Series 1993-133,
Class EZ
3,262 5.85 2/25/17 3,259
Series 1996-M4,
Class A
1,012 7.75 3/17/17 1,041
Series 1992-2000,
Class E
473 6.25 6/25/17 472
Series 1997-20,
Class IO,
Interest Only
Stripped Security
-- 6.15 3/25/27 249
--------
8,256
--------
Freddie Mac--12.2%
Series 1227, Class G
2,311 10.40 5/15/99 2,373
Series 1296, Class H
1,432 11.61 7/15/99 1,488
Series 1520, Class F
414 5.65 9/15/04 413
Series 2028, Class
PE
2,250 6.00 11/15/21 2,266
--------
6,540
--------
14,796
--------
MORTGAGE-BACKED SECURITIES--17.5%
Fannie Mae--8.8%
Pool #124945
$2,020 7.49% 12/1/98 $ 2,056
Pool #452480
2,727 6.00 11/1/28 2,691
--------
4,747
--------
Freddie Mac--8.7%
Pool #410092
214 7.57 11/1/24 218
Pool #G00767
2,282 7.50 8/1/27 2,343
Pool #C18079
2,101 6.00 11/1/28 2,074
--------
4,635
--------
$ 9,382
--------
</TABLE>
<TABLE>
<CAPTION>
Description
- ----------------------------------------------------------
Principal Maturity
Amount Rate Date Value
- ----------------------------------------------------------
<C> <S> <C> <C>
AGENCY OBLIGATIONS--16.8%
Fannie Mae--9.5%
$ 2,250 5.625% 3/15/01 $ 2,286
2,750 5.25 1/15/03 2,777
--------
5,063
--------
Freddie Mac--4.3%
2,250 5.75 7/15/03 2,317
--------
Tennessee Valley Authority--3.0%
1,500 6.24 7/15/45 1,576
--------
$ 8,956
- ----------------------------------------------------------
TOTAL U.S. GOVERNMENT AGENCIES
(Cost $33,097) $ 33,134
- ----------------------------------------------------------
U.S. GOVERNMENT OBLIGATIONS--31.6%
U.S. Treasury Notes--26.5%
$ 9,000 6.63% 7/31/01 $ 9,446
1,250 6.25 1/31/02 1,308
3,000 7.50 2/15/05 3,436
--------
14,190
--------
U.S. Treasury Inflationary In-
dex--5.1%
2,700 3.63% 1/15/08 2,712
- ----------------------------------------------------------
TOTAL U.S. GOVERNMENT OBLIGA-
TIONS
(Cost $16,864) $ 16,902
- ----------------------------------------------------------
SHORT-TERM INVESTMENT--7.2%
Federal Home Loan
Bank Discount Note
$ 3,866 5.150% 12/1/98 $ 3,866
- ----------------------------------------------------------
TOTAL SHORT-TERM INVESTMENT
(Cost $3,866) $ 3,866
- ----------------------------------------------------------
TOTAL INVESTMENTS--100.8%
(Cost $53,827) $ 53,902
- ----------------------------------------------------------
Liabilities, less other as-
sets--(0.8)% (419)
- ----------------------------------------------------------
NET ASSETS--100.0% $ 53,483
- ----------------------------------------------------------
- ----------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
30
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Description
- ------------------------------------------------------
Principal Maturity
Amount Rate Date Value
- ------------------------------------------------------
U.S. Treasury Index Portfolio
<C> <S> <C> <C>
U.S. GOVERNMENT OBLIGATIONS--
98.4%
U.S. Treasury Notes--48.8%
$2,300 7.75% 1/31/00 $ 2,379
1,450 4.50 9/30/00 1,448
1,900 6.50 5/31/01 1,983
1,400 6.25 2/15/03 1,483
1,000 6.50 8/15/05 1,101
1,525 6.25 2/15/07 1,674
1,500 5.75 8/15/23 1,568
-------
11,636
-------
U.S. Treasury Bonds--49.6%
1,000 11.75 2/15/01 1,148
1,400 7.50 11/15/01 1,510
1,000 6.00 7/31/02 1,046
65 13.875 5/15/11 101
660 14.00 11/15/11 1,048
490 13.25 5/15/14 812
1,450 7.25 5/15/16 1,774
1,025 8.125 5/15/21 1,395
700 8.00 11/15/21 944
1,400 6.25 8/15/23 1,577
400 6.50 11/15/26 469
-------
11,824
- ------------------------------------------------------
TOTAL U.S. GOVERNMENT OBLIGA-
TIONS
(Cost $22,076) $23,460
- ------------------------------------------------------
SHORT-TERM INVESTMENT--1.5%
Federal Home Loan
Bank Discount Note
$ 353 5.15% 12/1/98 $ 353
- ------------------------------------------------------
TOTAL SHORT-TERM INVESTMENT
(Cost $353) $ 353
- ------------------------------------------------------
TOTAL INVESTMENTS--99.9%
(Cost $22,429) $23,813
- ------------------------------------------------------
Other assets, less liabili-
ties--0.1% 10
- ------------------------------------------------------
NET ASSETS--100.0% $23,823
- ------------------------------------------------------
- ------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
31
<PAGE>
Northern Institutional Funds
Fixed Income Portfolios
- --------------------------------------------------------------------------------
Statements of Assets and Liabilities
November 30, 1998
(All amounts in thousands, except net asset value per share)
<TABLE>
<CAPTION>
Short- U.S. U.S.
Intermediate International Intermediate Government Treasury
Bond Bond Bond Bond Securities Index
Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio
- ------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Assets:
Investments in securi-
ties, at cost $650,576 $31,483 $26,708 $187,635 $53,827 $22,429
- ------------------------------------------------------------------------------------------------
Investments in securi-
ties, at value $659,413 $31,337 $27,854 $181,614 $53,902 $23,813
Cash and foreign curren-
cies 654 -- 46 274 -- 1
Receivables:
Interest 9,391 412 805 2,099 651 254
Fund shares sold 738 5 -- 83 126 3
Investment securities
sold -- -- -- -- 8 977
Foreign tax reclaims -- -- 17 -- -- --
Administrator 60 26 6 12 17 15
Deferred organization
costs, net -- -- 5 -- -- --
Other assets 6 -- 2 1 -- --
- ------------------------------------------------------------------------------------------------
Total assets 670,262 31,780 28,735 184,083 54,704 25,063
- ------------------------------------------------------------------------------------------------
Liabilities:
Due to custodian -- 1,269 -- -- 1,166 --
Payable for:
Fund shares redeemed 873 -- -- 188 24 13
Investment securities
purchased -- -- -- -- -- 1,212
Accrued expenses:
Advisory fees 135 6 17 38 11 3
Administration fees 54 2 4 15 4 2
Transfer agent fees 10 -- -- 2 1 --
Custodian fees 3 2 6 -- 2 1
Other liabilities 181 21 8 17 13 9
- ------------------------------------------------------------------------------------------------
Total liabilities 1,256 1,300 35 260 1,221 1,240
- ------------------------------------------------------------------------------------------------
Net assets $669,006 $30,480 $28,700 $183,823 $53,483 $23,823
- ------------------------------------------------------------------------------------------------
Analysis of net assets:
Paid-in capital $637,446 $30,290 $26,988 $186,617 $52,652 $22,739
Accumulated undistrib-
uted net investment in-
come 1,259 33 354 702 37 23
Accumulated net realized
gains (losses) on
investments and foreign
currency transactions 21,464 303 197 2,525 719 (323)
Net unrealized
appreciation
(depreciation) on
investments and foreign
currency transactions 8,837 (146) 1,146 (6,021) 75 1,384
Net unrealized gain on
translation of other
assets and liabilities
denominated in foreign
currencies -- -- 15 -- -- --
- ------------------------------------------------------------------------------------------------
Net assets $669,006 $30,480 $28,700 $183,823 $53,483 $23,823
- ------------------------------------------------------------------------------------------------
Total shares outstanding
(no par value), unlim-
ited shares authorized
Class A 28,021 1,511 1,338 9,137 2,384 1,014
Class C 2,845 -- -- -- 195 1
Class D 94 2 6 41 60 79
- ------------------------------------------------------------------------------------------------
Net asset value, offer-
ing and redemption price
per share
Class A $ 21.61 $ 20.15 $ 21.35 $ 20.03 $ 20.27 $ 21.77
Class C $ 21.60 -- -- -- $ 20.26 $ 21.81
Class D $ 21.58 $ 20.13 $ 21.26 $ 19.97 $ 20.22 $ 21.74
- ------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
32
<PAGE>
Northern Institutional Funds
Fixed Income Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS
For the Year Ended November 30, 1998
(All amounts in thousands)
<TABLE>
<CAPTION>
Short- U.S. U.S.
Intermediate International Intermediate Government Treasury
Bond Bond Bond Bond Securities Index
Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio
- ------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
INTEREST INCOME $43,266 $1,453 $1,651(a) $19,862 $3,143 $1,516
- ------------------------------------------------------------------------------------------------
EXPENSES:
Investment advisory fees 3,491 133 238 1,195 296 101
Administration fees 582 22 40 199 49 25
Transfer agent fees 112 2 3 22 9 5
Shareholder servicing
fees 91 -- -- 3 7 5
Custodian fees 76 18 55 28 22 21
Registration fees 71 40 28 40 22 21
Professional fees 32 4 7 11 7 6
Trustee fees and ex-
penses 14 1 3 5 3 3
Amortization of deferred
organization costs 2 3 16 2 5 2
Other 28 18 13 16 14 14
- ------------------------------------------------------------------------------------------------
TOTAL EXPENSES 4,499 241 403 1,521 434 203
Less voluntary waivers
of investment advisory
fees (2,037) (78) (53) (697) (173) (63)
Less expenses reimburs-
able by Administrator (222) (83) (95) (103) (72) (67)
- ------------------------------------------------------------------------------------------------
Net expenses 2,240 80 255 721 189 73
- ------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME 41,026 1,373 1,396 19,141 2,954 1,443
Net realized gains
(losses) on:
Investment transactions 21,659 324 271 1,538 786 732
Foreign currency trans-
actions -- -- (51) -- -- --
Net change in unrealized
appreciation (deprecia-
tion) on investments,
forward foreign cur-
rency contracts and
foreign currency
transactions (6,108) (85) 1,365 (6,078) (228) 445
Net change in unrealized
gains on translation of
other assets and lia-
bilities denominated in
foreign currencies -- -- 17 -- -- --
- ------------------------------------------------------------------------------------------------
NET INCREASE IN NET AS-
SETS RESULTING FROM OP-
ERATIONS $56,577 $1,612 $2,998 $14,601 $3,512 $2,620
- ------------------------------------------------------------------------------------------------
</TABLE>
(a) Net of $7 in non-reclaimable foreign withholding taxes.
See accompanying notes to financial statements.
33
<PAGE>
Northern Institutional Funds
Fixed Income Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
For the Years Ended November 30, 1998 and 1997
(All amounts in thousands)
<TABLE>
<CAPTION>
Intermediate
Bond Bond
Portfolio Portfolio
------------------ -----------------
1998 1997 1998 1997 (a)
- ------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS:
Net investment income $ 41,026 $ 28,861 $ 1,373 $ 204
Net realized gains (losses) on
investments, forward foreign currency
contracts and foreign currency
transactions 21,659 3,869 324 (21)
Net change in unrealized appreciation
(depreciation) on investments, forward
foreign currency contracts and foreign
currency transactions (6,108) 4,710 (85) (61)
Net change in unrealized gains on
translations of other assets and
liabilities denominated in foreign
currencies -- -- -- --
- ------------------------------------------------------------------------------
Net increase (decrease) in net assets
resulting from operations 56,577 37,440 1,612 122
- ------------------------------------------------------------------------------
DISTRIBUTIONS TO CLASS A SHAREHOLDERS
FROM:
Net investment income (35,543) (25,700) (1,358) (185)
Net realized gain on investment
transactions (2,645) -- -- --
- ------------------------------------------------------------------------------
Total distributions to Class A
shareholders (38,188) (25,700) (1,358) (185)
- ------------------------------------------------------------------------------
DISTRIBUTIONS TO CLASS C SHAREHOLDERS
FROM:
Net investment income (3,794) (2,140) -- --
Net realized gain on investment
transactions (295) -- -- --
- ------------------------------------------------------------------------------
Total distributions to Class C
shareholders (4,089) (2,140) -- --
- ------------------------------------------------------------------------------
DISTRIBUTIONS TO CLASS D SHAREHOLDERS
FROM:
Net investment income (107) (23) (1) --
Net realized gain on investment
transactions (6) -- -- --
- ------------------------------------------------------------------------------
Total distributions to Class D
shareholders (113) (23) (1) --
- ------------------------------------------------------------------------------
CLASS A SHARE TRANSACTIONS:
Proceeds from the sale of shares 217,204 155,583 27,967 11,875
Reinvested distributions 32,297 22,888 1,346 185
Cost of shares redeemed (117,228) (92,369) (11,125) --
- ------------------------------------------------------------------------------
Net increase (decrease) in net assets
resulting from
Class A share transactions 132,273 86,102 18,188 12,060
- ------------------------------------------------------------------------------
CLASS C SHARE TRANSACTIONS:
Proceeds from the sale of shares 30,139 60,626 -- --
Reinvested distributions 4,089 2,140 -- --
Cost of shares redeemed (24,755) (21,561) -- --
- ------------------------------------------------------------------------------
Net increase (decrease) in net assets
resulting from Class C share
transactions 9,473 41,205 -- --
- ------------------------------------------------------------------------------
CLASS D SHARE TRANSACTIONS:
Proceeds from the sale of shares 2,529 657 41 --
Reinvested distributions 113 22 1 --
Cost of shares redeemed (1,238) (306) -- --
- ------------------------------------------------------------------------------
Net increase (decrease) in net assets
resulting from Class D share
transactions 1,404 373 42 --
- ------------------------------------------------------------------------------
Net increase (decrease) 157,337 137,257 18,483 11,997
Net assets--beginning of year 511,669 374,412 11,997 --
- ------------------------------------------------------------------------------
NET ASSETS--END OF YEAR $669,006 $511,669 $30,480 $11,997
- ------------------------------------------------------------------------------
UNDISTRIBUTED NET INVESTMENT INCOME $ 1,259 $ 338 $ 33 $ 19
- ------------------------------------------------------------------------------
</TABLE>
(a) For the period August 1, 1997 (commencement of operations) through November
30, 1997.
See accompanying notes to financial statements.
34
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Short- U.S. Government
International Intermediate Securities U.S. Treasury
Bond Portfolio Bond Portfolio Portfolio Index Portfolio
- ---------------- ------------------ ------------------ ------------------
1998 1997 1998 1997 1998 1997 1998 1997
- -----------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 1,396 $ 1,608 $ 19,141 $ 13,180 $ 2,954 $ 5,026 $ 1,443 $ 1,856
220 97 1,538 (623) 786 76 732 (56)
1,365 (2,827) (6,078) (2,110) (228) (46) 445 382
17 3 -- -- -- -- -- --
- -----------------------------------------------------------------------------
2,998 (1,119) 14,601 10,447 3,512 5,056 2,620 2,182
- -----------------------------------------------------------------------------
(1,024) (1,390) (17,379) (12,516) (2,583) (4,820) (1,370) (1,746)
(385) (520) (267) (414) -- -- -- --
- -----------------------------------------------------------------------------
(1,409) (1,910) (17,646) (12,930) (2,583) (4,820) (1,370) (1,746)
- -----------------------------------------------------------------------------
-- -- -- -- (188) (204) (1) --
-- -- -- -- -- -- -- --
- -----------------------------------------------------------------------------
-- -- -- -- (188) (204) (1) --
- -----------------------------------------------------------------------------
(5) (3) (87) (39) (42) (17) (105) (79)
(2) (1) (1) (1) -- -- -- --
- -----------------------------------------------------------------------------
(7) (4) (88) (40) (42) (17) (105) (79)
- -----------------------------------------------------------------------------
2,261 1,168 125,815 121,515 12,721 68,991 15,301 20,990
1,217 1,525 14,872 11,648 2,336 4,525 458 1,197
(2,867) (7,465) (156,030) (82,865) (10,457) (122,819) (28,575) (14,944)
- -----------------------------------------------------------------------------
611 (4,772) (15,343) 50,298 4,600 (49,303) (12,816) 7,243
- -----------------------------------------------------------------------------
-- -- -- -- 1,687 1,328 184 --
-- -- -- -- 188 204 1 --
-- -- -- -- (1,094) (1,940) (164) --
- -----------------------------------------------------------------------------
-- -- -- -- 781 (408) 21 --
- -----------------------------------------------------------------------------
65 47 454 638 1,026 111 445 1,106
6 4 75 27 29 6 53 40
(38) (7) (578) (110) (155) (29) (570) (321)
- -----------------------------------------------------------------------------
33 44 (49) 555 900 88 (72) 825
- -----------------------------------------------------------------------------
2,226 (7,761) (18,525) 48,330 6,980 (49,608) (11,723) 8,425
26,474 34,235 202,348 154,018 46,503 96,111 35,546 27,121
- -----------------------------------------------------------------------------
$28,700 $26,474 $183,823 $202,348 $53,483 $ 46,503 $ 23,823 $ 35,546
- -----------------------------------------------------------------------------
$ 354 $ 38 $ 702 $ 56 $ 37 $ -- $ 23 $ 56
- -----------------------------------------------------------------------------
</TABLE>
35
<PAGE>
Northern Institutional Funds
Fixed Income Portfolios
- -------------------------------------------------------------------------------
Financial Highlights
For the Years Ended November 30,
Bond Portfolio
<TABLE>
<CAPTION>
Class A
------------------------------------------------
1998 1997 1996 1995 1994
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning
of year $ 21.08 $ 20.77 $ 20.96 $ 18.29 $ 20.70
Income (loss) from invest-
ment operations:
Net investment income 1.47 1.34 1.29 1.17 1.42
Net realized and unrealized
gain (loss) 0.62 0.29 (0.19) 2.66 (2.21)
- --------------------------------------------------------------------------------
Total income (loss) from in-
vestment operations 2.09 1.63 1.10 3.83 (0.79)
- --------------------------------------------------------------------------------
Distributions to sharehold-
ers from:
Net investment income (1.44) (1.32) (1.26) (1.14) (1.46)
Net realized gain (0.12) -- -- -- (0.15)
Return of capital -- -- (0.03) (0.02) (0.01)
- --------------------------------------------------------------------------------
Total distributions to
shareholders (1.56) (1.32) (1.29) (1.16) (1.62)
- --------------------------------------------------------------------------------
Net increase (decrease) 0.53 0.31 (0.19) 2.67 (2.41)
- --------------------------------------------------------------------------------
Net asset value, end of year $ 21.61 $ 21.08 $ 20.77 $ 20.96 $ 18.29
- --------------------------------------------------------------------------------
Total return (c) 10.31% 8.17% 5.57% 21.55% (4.04)%
Ratio to average net assets
of (d):
Expenses, net of waivers
and reimbursements 0.36% 0.36% 0.36% 0.36% 0.36%
Expenses, before waivers
and reimbursements 0.75% 0.77% 0.84% 0.84% 0.87%
Net investment income, net
of waivers and reimburse-
ments 7.07% 6.66% 6.39% 5.94% 7.31%
Net investment income, be-
fore waivers and reim-
bursements 6.68% 6.25% 5.91% 5.46% 6.80%
Portfolio turnover rate 84.80% 76.30% 101.38% 74.19% 103.09%
Net assets at end of year
(in thousands) $605,517 $460,514 $366,850 $286,301 $257,391
- --------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Class C Class D
---------------------------------- -----------------------------------------
1998 1997 1996 1995(a) 1998 1997 1996 1995 1994 (b)
- --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, begin-
ning of year $ 21.07 $ 20.78 $ 20.96 $20.21 $21.05 $20.76 $ 20.94 $18.29 $ 18.74
Income (loss) from in-
vestment operations:
Net investment income 1.42 1.29 1.25 0.47 1.38 1.24 1.22 1.08 0.28
Net realized and
unrealized gain (loss) 0.62 0.28 (0.18) 0.74 0.63 0.30 (0.18) 2.66 (0.45)
- --------------------------------------------------------------------------------------------------------
Total income from in-
vestment operations 2.04 1.57 1.07 1.21 2.01 1.54 1.04 3.74 (0.17)
- --------------------------------------------------------------------------------------------------------
Distributions to share-
holders from:
Net investment income (1.39) (1.28) (1.22) (0.45) (1.36) (1.25) (1.19) (1.09) (0.28)
Net realized gain (0.12) -- -- -- (0.12) -- -- -- --
Return of capital -- -- (0.03) (0.01) -- -- (0.03) -- --
- --------------------------------------------------------------------------------------------------------
Total distributions to
shareholders (1.51) (1.28) (1.25) (0.46) (1.48) (1.25) (1.22) (1.09) (0.28)
- --------------------------------------------------------------------------------------------------------
Net increase (decrease) 0.53 0.29 (0.18) 0.75 0.53 0.29 (0.18) 2.65 (0.45)
- --------------------------------------------------------------------------------------------------------
Net asset value, end of
year $ 21.60 $ 21.07 $ 20.78 $20.96 $21.58 $21.05 $ 20.76 $20.94 $ 18.29
- --------------------------------------------------------------------------------------------------------
Total return (c) 10.04% 7.88% 5.33% 6.08% 9.89% 7.74% 5.17% 21.06% (0.94)%
Ratio to average net as-
sets of (d):
Expenses, net of waiv-
ers and reimbursements 0.60% 0.60% 0.60% 0.60% 0.75% 0.75% 0.75% 0.75% 0.75%
Expenses, before waiv-
ers and reimbursements 0.99% 1.01% 1.08% 1.08% 1.14% 1.16% 1.23% 1.23% 1.26%
Net investment income,
net of waivers and
reimbursements 6.83% 6.39% 6.09% 5.59% 6.70% 6.27% 5.99% 5.48% 6.31%
Net investment income,
before waivers and
reimbursements 6.44% 5.98% 5.61% 5.11% 6.31% 5.86% 5.51% 5.00% 5.80%
Portfolio turnover rate 84.80% 76.30% 101.38% 74.19% 84.80% 76.30% 101.38% 74.19% 103.09%
Net assets at end of
year (in thousands) $61,450 $50,554 $ 7,342 $3,704 $2,039 $ 601 $ 220 $ 120 $ 15
- --------------------------------------------------------------------------------------------------------
</TABLE>
(a) For the period July 3, 1995 (Class C shares issue date) through November
30, 1995.
(b) For the period September 14, 1994 (Class D shares issue date) through
November 30, 1994.
(c) Assumes investment at net asset value at the beginning of the year,
reinvestment of all dividends and distributions, and a complete redemption
of the investment at the net asset value at the end of the year. Total
return is not annualized for periods less than one year.
(d) Annualized for periods less than a full year.
See accompanying notes to financial statements.
36
<PAGE>
Northern Institutional Funds
Fixed Income Portfolios
- --------------------------------------------------------------------------------
Financial Highlights
For the Year Ended November 30,
Intermediate Bond Portfolio
<TABLE>
<CAPTION>
Class A Class D
------------------ --------
1998 1997 (a) 1998 (b)
- -------------------------------------------------------------------------------
<S> <C> <C> <C>
Net asset value, beginning of year $ 19.89 $ 20.00 $20.46
Income (loss) from investment operations:
Net investment income 1.19 0.38 0.18
Net realized and unrealized gain (loss) 0.27 (0.15) (0.32)
- -------------------------------------------------------------------------------
Total income from investment operations 1.46 0.23 (0.14)
- -------------------------------------------------------------------------------
Distributions to shareholders from:
Net investment income (1.20) (0.34) (0.19)
- -------------------------------------------------------------------------------
Total distributions to shareholders (1.20) (0.34) (0.19)
- -------------------------------------------------------------------------------
Net increase (decrease) $ 0.26 $ (0.11) $(0.33)
- -------------------------------------------------------------------------------
Net asset value, end of year $ 20.15 $ 19.89 $20.13
- -------------------------------------------------------------------------------
Total return (c) 7.55% 1.17% (0.70)%
Ratio to average net assets of (d):
Expenses, net of waivers and reimbursements 0.36% 0.36% 0.75%
Expenses, before waivers and reimbursements 1.09% 2.28% 1.48%
Net investment income, net of waivers and reim-
bursements 6.19% 5.87% 5.69%
Net investment income, before waivers and reim-
bursements 5.46% 3.95% 4.96%
Portfolio turnover rate 93.40% 56.99% 93.40%
Net assets at end of year (in thousands) $30,439 $11,997 $ 41
- -------------------------------------------------------------------------------
</TABLE>
(a) For the period August 1, 1997 (commencement of operations) through November
30, 1997.
(b) For the period October 5, 1998 (Class D share issue date) through November
30, 1998.
(c) Assumes investment at net asset value at the beginning of the year,
reinvestment of all dividends and distributions, and a complete redemption
of the investment at the net asset value at the end of the year. Total
return is not annualized for periods less than one year.
(d) Annualized for periods less than a full year.
See accompanying notes to financial statements.
37
<PAGE>
Northern Institutional Funds
Fixed Income Portfolios
- -------------------------------------------------------------------------------
Financial Highlights
For the Years Ended November 30,
International Bond Portfolio
<TABLE>
<CAPTION>
Class A
--------------------------------------------
1998 1997 1996 1995 1994(a)
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of
year $ 20.13 $ 22.16 $ 21.74 $ 19.93 $ 20.00
Income (loss) from investment op-
erations:
Net investment income 0.98 1.02 1.54 1.26 0.79
Net realized and unrealized gain
(loss) 1.33 (1.70) 0.43 2.28 0.01
- --------------------------------------------------------------------------------
Total income (loss) from invest-
ment operations 2.31 (0.68) 1.97 3.54 0.80
- --------------------------------------------------------------------------------
Distributions to shareholders
from:
Net investment income (c) (0.79) (1.01) (1.55) (1.73) (0.87)
Net realized gain (0.30) (0.34) -- -- --
- --------------------------------------------------------------------------------
Total distributions to sharehold-
ers (1.09) (1.35) (1.55) (1.73) (0.87)
- --------------------------------------------------------------------------------
Net increase (decrease) 1.22 (2.03) 0.42 1.81 (0.07)
- --------------------------------------------------------------------------------
Net asset value, end of year $ 21.35 $ 20.13 $ 22.16 $ 21.74 $ 19.93
- --------------------------------------------------------------------------------
Total return (d) 11.85% (3.02)% 9.47% 18.20% 4.03%
Ratio to average net assets of
(e):
Expenses, net of waivers and re-
imbursements 0.96% 0.96% 0.96% 0.96% 0.96%
Expenses, before waivers and re-
imbursements 1.52% 1.52% 1.58% 1.47% 1.49%
Net investment income, net of
waivers and reimbursements 5.27% 5.61% 5.91% 5.92% 5.93%
Net investment income, before
waivers and reimbursements 4.71% 5.05% 5.29% 5.41% 5.40%
Portfolio turnover rate 23.76% 29.29% 33.89% 54.46% 88.65%
Net assets at end of year (in
thousands) $28,568 $26,383 $34,183 $32,673 $26,947
- --------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Class D
--------------------------------
1998 1997 1996 1995(b)
- ------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value, beginning of year $20.06 $22.14 $21.74 $22.17
Income (loss) from investment operations:
Net investment income 0.93 0.97 1.37 0.02
Net realized and unrealized gain (loss) 1.29 (1.72) 0.51 (0.08)
- ------------------------------------------------------------------------------
Total income (loss) from investment opera-
tions 2.22 (0.75) 1.88 (0.06)
- ------------------------------------------------------------------------------
Distributions to shareholders from:
Net investment income (c) (0.72) (0.99) (1.48) (0.37)
Net realized gain (0.30) (0.34) -- --
- ------------------------------------------------------------------------------
Total distributions to shareholders (1.02) (1.33) (1.48) (0.37)
- ------------------------------------------------------------------------------
Net increase (decrease) 1.20 (2.08) 0.40 (0.43)
- ------------------------------------------------------------------------------
Net asset value, end of year $21.26 $20.06 $22.14 $21.74
- ------------------------------------------------------------------------------
Total return (d) 11.43% (3.38)% 9.04% (0.30)%
Ratio to average net assets of (e):
Expenses, net of waivers and reimbursements 1.35% 1.35% 1.35% 1.35%
Expenses, before waivers and reimbursements 1.91% 1.91% 1.97% 1.86%
Net investment income, net of waivers and
reimbursements 4.90% 5.36% 5.67% 3.26%
Net investment income, before waivers and
reimbursements 4.34% 4.80% 5.05% 2.75%
Portfolio turnover rate 23.76% 29.29% 33.89% 54.46%
Net assets at end of year (in thousands) $ 132 $ 91 $ 52 $ 9
- ------------------------------------------------------------------------------
</TABLE>
(a) For the period March 28, 1994 (commencement of operations) through
November 30, 1994.
(b) For the period November 20, 1995 (Class D shares issue date) through
November 30, 1995.
(c) Distributions to shareholders from net investment income include amounts
relating to foreign currency transactions which are treated as ordinary
income for Federal income tax purposes.
(d) Assumes investment at net asset value at the beginning of the year,
reinvestment of all dividends and distributions, and a complete redemption
of the investment at the net asset value at the end of the year. Total
return is not annualized for periods less than one year.
(e) Annualized for periods less than a full year.
See accompanying notes to financial statements.
38
<PAGE>
Northern Institutional Funds
Fixed Income Portfolios
- --------------------------------------------------------------------------------
Financial Highlights
For the Years Ended November 30,
Short-Intermediate Bond Portfolio
<TABLE>
<CAPTION>
Class A
-----------------------------------------------
1998 1997 1996 1995 1994
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of
year $ 20.36 $ 20.70 $ 20.73 $ 19.53 $ 20.33
Income (loss) from investment
operations:
Net investment income 1.84 1.46 1.14 1.02 0.97
Net realized and unrealized
gain (loss) (0.36) (0.29) (0.01) 1.19 (0.80)
- --------------------------------------------------------------------------------
Total income from investment
operations 1.48 1.17 1.13 2.21 0.17
- --------------------------------------------------------------------------------
Distributions to shareholders
from:
Net investment income (1.78) (1.46) (1.16) (1.01) (0.97)
Net realized gain (0.03) (0.05) -- -- --
- --------------------------------------------------------------------------------
Total distributions to share-
holders (1.81) (1.51) (1.16) (1.01) (0.97)
- --------------------------------------------------------------------------------
Net increase (decrease) (0.33) (0.34) (0.03) 1.20 (0.80)
- --------------------------------------------------------------------------------
Net asset value, end of year $ 20.03 $ 20.36 $ 20.70 $ 20.73 $ 19.53
- --------------------------------------------------------------------------------
Total return (b) 7.50% 5.95% 5.68% 11.58% 0.84%
Ratio to average net assets of
(c):
Expenses, net of waivers and
reimbursements 0.36% 0.36% 0.36% 0.36% 0.36%
Expenses, before waivers and
reimbursements 0.76% 0.81% 0.88% 0.91% 0.95%
Net investment income, net of
waivers and reimbursements 9.61% 7.68% 5.83% 5.14% 4.84%
Net investment income, before
waivers and reimbursements 9.21% 7.23% 5.31% 4.59% 4.25%
Portfolio turnover rate 89.97% 48.49% 47.68% 54.68% 48.67%
Net assets at end of year (in
thousands) $182,999 $201,457 $153,675 $158,678 $96,209
- --------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Class D
---------------------------------------
1998 1997 1996 1995 1994 (a)
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year $20.31 $20.66 $20.71 $19.53 $19.82
Income (loss) from investment opera-
tions:
Net investment income 1.78 1.43 1.07 0.94 0.23
Net realized and unrealized gain
(loss) (0.40) (0.34) (0.02) 1.18 (0.29)
- -------------------------------------------------------------------------------
Total income (loss) from investment
operations 1.38 1.09 1.05 2.12 (0.06)
- -------------------------------------------------------------------------------
Distributions to shareholders from:
Net investment income (1.69) (1.39) (1.10) (0.94) (0.23)
Net realized gain (0.03) (0.05) -- -- --
- -------------------------------------------------------------------------------
Total distributions to shareholders (1.72) (1.44) (1.10) (0.94) (0.23)
- -------------------------------------------------------------------------------
Net increase (decrease) (0.34) (0.35) (0.05) 1.18 (0.29)
- -------------------------------------------------------------------------------
Net asset value, end of year $19.97 $20.31 $20.66 $20.71 $19.53
- -------------------------------------------------------------------------------
Total return (b) 7.08% 5.54% 5.22% 11.09% (0.30)%
Ratio to average net assets of (c):
Expenses, net of waivers and reim-
bursements 0.75% 0.75% 0.75% 0.75% 0.75%
Expenses, before waivers and reim-
bursements 1.15% 1.20% 1.27% 1.30% 1.34%
Net investment income, net of waivers
and reimbursements 9.31% 7.48% 4.96% 4.85% 4.42%
Net investment income, before waivers
and reimbursements 8.91% 7.03% 4.44% 4.30% 3.83%
Portfolio turnover rate 89.97% 48.49% 47.68% 54.68% 48.67%
Net assets at end of year (in thou-
sands) $ 824 $ 891 $ 343 $ 13 $ 1
- -------------------------------------------------------------------------------
</TABLE>
(a) For the period September 14, 1994 (Class D shares issue date) through
November 30, 1994.
(b) Assumes investment at net asset value at the beginning of the year,
reinvestment of all dividends and distributions, and a complete redemption
of the investment at the net asset value at the end of the year. Total
return is not annualized for periods less than one year.
(c) Annualized for periods less than a full year.
See accompanying notes to financial statements.
39
<PAGE>
Northern Institutional Funds
Fixed Income Portfolios
- -------------------------------------------------------------------------------
Financial Highlights
For the Years Ended November 30,
U.S. Government Securities Portfolio
<TABLE>
<CAPTION>
Class A
--------------------------------------------------
1998 1997 1996 1995 1994
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning
of year $ 19.99 $ 20.07 $ 20.08 $ 19.05 $ 20.07
Income (loss) from invest-
ment operations:
Net investment income 1.17 1.21 1.02 1.05 0.91
Net realized and
unrealized gain (loss) 0.26 (0.07) (0.01) 1.02 (1.02)
- --------------------------------------------------------------------------------
Total income (loss) from
investment operations 1.43 1.14 1.01 2.07 (0.11)
- --------------------------------------------------------------------------------
Distributions to share-
holders from:
Net investment income (1.15) (1.22) (1.02) (1.04) (0.91)
- --------------------------------------------------------------------------------
Total distributions to
shareholders (1.15) (1.22) (1.02) (1.04) (0.91)
- --------------------------------------------------------------------------------
Net increase (decrease) 0.28 (0.08) (0.01) 1.03 (1.02)
- --------------------------------------------------------------------------------
Net asset value, end of
year $ 20.27 $ 19.99 $ 20.07 $ 20.08 $ 19.05
- --------------------------------------------------------------------------------
Total return (c) 7.36% 5.93% 5.15% 11.18% (0.57)%
Ratio to average net as-
sets of (d):
Expenses, net of waivers
and reimbursements 0.36% 0.36% 0.36% 0.36% 0.36%
Expenses, before waivers
and reimbursements 0.86% 0.85% 0.94% 1.09% 1.12%
Net investment income,
net of waivers and reim-
bursements 6.01% 5.86% 5.22% 5.43% 4.62%
Net investment income,
before waivers and reim-
bursements 5.51% 5.37% 4.64% 4.70% 3.86%
Portfolio turnover rate 115.55% 95.73% 119.75% 141.14% 45.55%
Net assets at end of year
(in thousands) $48,317 $43,073 $92,351 $56,329 $25,293
- --------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Class C Class D
------------------------- ----------------------------------------
1998 1997 1996 (a) 1998 1997 1996 1995 1994 (b)
- ----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, begin-
ning of year $19.98 $20.06 $ 20.13 $ 19.94 $20.03 $20.04 $19.05 $19.43
Income (loss) from in-
vestment operations:
Net investment income 1.12 1.14 0.91 1.08 1.16 0.96 0.96 0.22
Net realized and
unrealized gain (loss) 0.26 (0.04) (0.12) 0.28 (0.10) (0.03) 1.00 (0.38)
- ----------------------------------------------------------------------------------------------
Total income (loss) from
investment operations 1.38 1.10 0.79 1.36 1.06 0.93 1.96 (0.16)
- ----------------------------------------------------------------------------------------------
Distributions to share-
holders from:
Net investment income (1.10) (1.18) (0.86) (1.08) (1.15) (0.94) (0.97) (0.22)
- ----------------------------------------------------------------------------------------------
Total distributions to
shareholders (1.10) (1.18) (0.86) (1.08) (1.15) (0.94) (0.97) (0.22)
- ----------------------------------------------------------------------------------------------
Net increase (decrease) 0.28 (0.08) (0.07) 0.28 (0.09) (0.01) 0.99 (0.38)
- ----------------------------------------------------------------------------------------------
Net asset value, end of
year $20.26 $19.98 $ 20.06 $ 20.22 $19.94 $20.03 $20.04 $19.05
- ----------------------------------------------------------------------------------------------
Total return (c) 7.10% 5.67% 4.05% 6.96% 5.52% 4.77% 10.66% (0.90)%
Ratio to average net as-
sets of (d):
Expenses, net of waiv-
ers and reimbursements 0.60% 0.60% 0.60% 0.75% 0.75% 0.75% 0.75% 0.75%
Expenses, before waiv-
ers and reimbursements 1.10% 1.09% 1.18% 1.25% 1.24% 1.33% 1.48% 1.51%
Net investment income,
net of waivers and re-
imbursements 5.77% 5.63% 4.97% 5.55% 5.50% 4.83% 5.08% 4.65%
Net investment income,
before waivers and re-
imbursements 5.27% 5.14% 4.39% 5.05% 5.01% 4.25% 4.35% 3.89%
Portfolio turnover rate 115.55% 95.73% 119.75% 115.55% 95.73% 119.75% 141.14% 45.55%
Net assets at end of
year (in thousands) $3,942 $3,118 $ 3,535 $ 1,224 $ 312 $ 225 $ 67 $ 13
- ----------------------------------------------------------------------------------------------
</TABLE>
(a) For the period December 29, 1995 (Class C shares issue date) through
November 30, 1996.
(b) For the period September 15, 1994 (Class D shares issue date) through
November 30, 1994.
(c) Assumes investment at net asset value at the beginning of the year,
reinvestment of all dividends and distributions, and a complete redemption
of the investment at the net asset value at the end of the year. Total
return is not annualized for periods less than one year.
(d) Annualized for periods less than a full year.
See accompanying notes to financial statements.
40
<PAGE>
Northern Institutional Funds
Fixed Income Portfolios
- -------------------------------------------------------------------------------
Financial Highlights
For the Years Ended November 30,
U.S. Treasury Index Portfolio
<TABLE>
<CAPTION>
Class A
-------------------------------------------
1998 1997 1996 1995 1994
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of
year $ 20.81 $ 20.60 $ 20.78 $ 18.77 $ 21.05
Income (loss) from investment op-
erations:
Net investment income 1.23 1.26 1.19 1.11 1.15
Net realized and unrealized gain
(loss) 0.97 0.20 (0.18) 2.01 (1.93)
- --------------------------------------------------------------------------------
Total income (loss) from invest-
ment operations 2.20 1.46 1.01 3.12 (0.78)
- --------------------------------------------------------------------------------
Distributions to shareholders
from:
Net investment income (1.24) (1.25) (1.19) (1.11) (1.14)
Net realized gain -- -- -- -- (0.36)
- --------------------------------------------------------------------------------
Total distributions to sharehold-
ers (1.24) (1.25) (1.19) (1.11) (1.50)
- --------------------------------------------------------------------------------
Net increase (decrease) 0.96 0.21 (0.18) 2.01 (2.28)
- --------------------------------------------------------------------------------
Net asset value, end of year $ 21.77 $ 20.81 $ 20.60 $ 20.78 $ 18.77
- --------------------------------------------------------------------------------
Total return (c) 10.92% 7.44% 5.10% 16.95% (3.80)%
Ratio to average net assets of
(d):
Expenses, net of waivers and re-
imbursements 0.26% 0.26% 0.26% 0.26% 0.26%
Expenses, before waivers and re-
imbursements 0.77% 0.82% 1.04% 0.89% 0.79%
Net investment income, net of
waivers and reimbursements 5.73% 6.36% 5.93% 5.09% 5.60%
Net investment income, before
waivers and reimbursements 5.22% 5.80% 5.15% 4.46% 5.07%
Portfolio turnover rate 69.84% 72.61% 42.49% 80.36% 52.80%
Net assets at end of year (in
thousands) $22,085 $33,839 $26,273 $17,674 $37,305
- --------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Class C Class D
-------- -----------------------------------------
1998 (a) 1998 1997 1996 1995 1994 (b)
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, begin-
ning of year $ 22.28 $ 20.77 $20.57 $20.75 $18.77 $18.80
Income (loss) from in-
vestment operations:
Net investment income 0.21 1.13 1.20 1.17 1.00 0.09
Net realized and
unrealized gain (loss) (0.52) 1.00 0.18 (0.24) 2.03 (0.03)
- -------------------------------------------------------------------------------
Total income from invest-
ment operations (0.31) 2.13 1.38 0.93 3.03 0.06
- -------------------------------------------------------------------------------
Distributions to share-
holders from:
Net investment income (0.16) (1.16) (1.18) (1.11) (1.05) (0.09)
- -------------------------------------------------------------------------------
Total distributions to
shareholders (0.16) (1.16) (1.18) (1.11) (1.05) (0.09)
- -------------------------------------------------------------------------------
Net increase (decrease) (0.47) 0.97 0.20 (0.18) 1.98 (0.03)
- -------------------------------------------------------------------------------
Net asset value, end of
year $ 21.81 $ 21.74 $20.77 $20.57 $20.75 $18.77
- -------------------------------------------------------------------------------
Total return (c) (1.39)% 10.50% 7.03% 4.72% 16.43% 0.37%
Ratio to average net as-
sets of (d):
Expenses, net of waivers
and reimbursements 0.50% 0.65% 0.65% 0.65% 0.65% 0.65%
Expenses, before waivers
and reimbursements 1.01% 1.16% 1.21% 1.43% 1.28% 1.18%
Net investment income,
net of waivers and
reimbursements 5.22% 5.35% 6.07% 5.57% 5.41% 6.05%
Net investment income,
before waivers and
reimbursements 4.71% 4.84% 5.51% 4.79% 4.78% 5.52%
Portfolio turnover rate 69.84% 69.84% 72.61% 42.49% 80.36% 52.80%
Net assets at end of year
(in thousands) $ 17 $ 1,721 $1,707 $ 848 $ 286 $ --
- -------------------------------------------------------------------------------
</TABLE>
(a) For the period October 7, 1998 (Class C shares issue date) through
November 30, 1998.
(b) For the period November 16, 1994 (Class D shares issue date) through
November 30, 1994.
(c) Assumes investment at net asset value at the beginning of the year,
reinvestment of all dividends and distributions, and a complete redemption
of the investment at net asset value at the end of the year. Total return
is not annualized for periods less than one year.
(d) Annualized for periods less than a full year.
See accompanying notes to financial statements.
41
<PAGE>
The Northern Institutional Funds
Equity Portfolios
- --------------------------------------------------------------------------------
Statements of Investments
November 30, 1998
(All amounts in thousands, except shares)
<TABLE>
<CAPTION>
Shares Description Value
- --------------------------------------------------------
Balanced Portfolio
<C> <S> <C>
COMMON STOCKS--54.6%
Advertising--0.6%
11,000 Snyder Communications, Inc. $ 391
-------
Banking--1.1%
5,000 Banc One Corp. 257
3,500 First Union Corp. 213
2,400 State Street Corp. 165
4,000 Wells Fargo Co. 145
-------
780
-------
Beverages--2.1%
2,000 Anheuser-Busch Companies, Inc. 121
5,000 Coca-Cola (The) Co. 350
14,400 PepsiCo, Inc. 557
8,200 Starbucks Corp.* 378
-------
1,406
-------
Chemicals--0.3%
3,700 Du Pont (E.I.) de Nemours & Co. 217
-------
Commercial Services--0.9%
12,000 Paychex, Inc. 597
-------
Communications--0.5%
5,500 AT&T Corp. 342
-------
Computers--3.5%
8,925 Cisco Systems, Inc.* 673
11,600 Computer Sciences Corp.* 663
4,500 Dell Computer Corp.* 274
2,000 EMC Corp.* 145
3,800 International Business Machines Corp. 627
-------
2,382
-------
Cosmetics and Personal Care--1.5%
7,000 Gillette Co. 322
7,800 Procter & Gamble Co. 683
-------
1,005
-------
Diversified Financial Services--4.5%
2,100 American Express Co. 210
14,900 Fannie Mae 1,084
12,500 Freddie Mac 756
6,000 MBNA Corp. 136
1,200 Merrill Lynch & Co. 90
5,000 Price (T. Rowe) Associates 179
11,000 Schwab (Charles) Corp. 620
-------
3,075
-------
Electric--0.5%
4,000 Cinergy Corp. 138
3,500 Duke Energy Corp. 219
-------
357
-------
Electrical Components and Equipment--0.7%
7,500 Emerson Electric Co. 488
-------
Electronics--0.7%
7,000 Solectron Corp.* 463
-------
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- ---------------------------------------------------------------
<C> <S> <C>
Food--0.3%
3,000 Albertson's Inc. $ 171
-------
Health Care--3.2%
6,000 Becton, Dickinson & Co. 255
1,000 Guidant Corp. 86
28,725 Health Management Associates, Inc., Class A* 623
6,200 Johnson & Johnson Co. 504
10,400 Medtronic, Inc. 703
-------
2,171
-------
Housewares--0.6%
10,000 Newell Co. 443
-------
Insurance--2.3%
3,200 Allstate Corp. 130
10,650 American International Group, Inc. 1,001
4,900 MBIA, Inc. 317
2,000 Nationwide Financial Services 96
-------
1,544
-------
Leisure Time--0.7%
13,000 Carnival Corp., Class A 449
-------
Media--1.0%
4,900 Disney (Walt) Co. 158
8,300 Fox Entertainment Group, Inc.* 196
30,200 Time Warner, Inc. 338
-------
692
-------
Miscellaneous Manufacturing--2.1%
12,400 General Electric Co. 1,121
5,000 Tyco International Ltd. 329
-------
1,450
-------
Office and Business Equipment--1.3%
14,000 Pitney Bowes, Inc. 784
1,200 Xerox Corp. 129
-------
913
-------
Oil and Gas Producers--3.9%
6,000 Chevron Corp. 502
14,000 Conoco, Inc.* 332
11,400 Exxon Corp. 856
3,700 Mobil Corp. 319
13,800 Royal Dutch Petroleum Co. 649
-------
2,658
-------
Oil and Gas Services--0.6%
9,600 Schlumberger Ltd. ADR 429
-------
Pharmaceuticals--5.9%
2,800 Bristol-Myers Squibb Co. 343
9,000 Cardinal Health, Inc. 618
6,000 Elan Corp. PLC ADR* 409
3,700 Eli Lilly & Co. 332
4,900 Merck & Co., Inc. 759
4,900 Pfizer, Inc. 547
1,700 Schering-Plough Corp. 181
10,800 Warner-Lambert Co. 815
-------
4,004
-------
</TABLE>
See accompanying notes to financial statements.
42
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares/
Principal
Amount Description Value
- -------------------------------------------------------------------------------
<C> <S> <C>
Retail--6.7%
6,300 Dayton Hudson Corp. $ 284
2,500 Gap, Inc. 184
19,300 Home Depot (The), Inc. 960
4,100 Kohls Corp.* 202
21,050 Staples, Inc.* 735
19,000 Walgreen Co. 1,020
15,500 Wal-Mart Stores, Inc. 1,167
-------
4,552
-------
Semiconductors--1.4%
5,900 Intel Corp. 635
2,500 Motorola, Inc. 155
1,800 Texas Instruments, Inc. 137
-------
927
-------
Software--1.9%
9,500 Microsoft Corp.* 1,159
4,000 Oracle Corp.* 137
-------
1,296
-------
Telecommunication Equipment--1.5%
6,000 Lucent Technologies, Inc. 516
1,000 Nokia OYJ 98
8,000 Tellabs, Inc.* 433
-------
1,047
-------
Telephone--2.4%
10,200 Ameritech Corp. 552
5,400 Bell Atlantic Corp. 300
2,000 Bellsouth Corp. 175
5,000 MCI WORLDCOM, Inc.* 295
7,000 SBC Communications, Inc. 336
-------
1,658
-------
Textiles--0.5%
6,400 Cintas Corp. 352
-------
Tobacco--1.4%
12,700 Phillip Morris Co., Inc. 710
6,000 UST, Inc. 209
-------
919
- -------------------------------------------------------------------------------
TOTAL COMMON STOCKS (Cost $23,107) $37,178
- -------------------------------------------------------------------------------
PREFERRED STOCK--1.4%
Agency--1.4%
1,000 Home Ownership Funding Corp. $ 974
- -------------------------------------------------------------------------------
TOTAL PREFERRED STOCK (Cost $1,000) $ 974
- -------------------------------------------------------------------------------
ASSET-BACKED SECURITIES--4.4%
Automotive--2.7%
Chevy Chase Auto Receivables Trust, Series 1997-4, Class A
$ 686 6.25%Due 6/15/04 $ 691
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount Description Value
- ------------------------------------------------------------------------------
<C> <S> <C>
Olympic Automobile Receivable Trust, Series 1996-D, Class
A-4
$ 600 6.05%Due 8/15/02 $ 605
Western Financial Grantor Trust, Series 1994-4, Class A-1
25 7.10Due 1/11/00 25
Series 1995-5, Class A-1
182 5.875Due 3/1/02 183
Western Financial Owner Trust, Series 1997-A, Class A-3
307 6.50Due 9/20/01 311
-------
1,815
-------
Credit Card--1.5%
Circuit City Credit Card Master Trust, Series 1994-2,
Class A
1,000 8.00Due 11/15/03 1,026
-------
Home Equity Loans--0.2%
The Money Store Trust, Series 1997-1
161 7.36Due 5/16/01 161
- ------------------------------------------------------------------------------
TOTAL ASSET-BACKED SECURITIES (Cost $2,988) $ 3,002
- ------------------------------------------------------------------------------
COLLATERALIZED MORTGAGE OBLIGATIONS--2.4%
Donaldson, Lufkin & Jenrette
Mortgage Acceptance Corp.,
Series 1994-Q8, Class 2-A1
$ 199 7.25%Due 5/25/24 $ 202
Financial Asset Securitization, Inc.,
Series 1997-NAMC, Class FXA-3
240 7.35Due 4/25/27 239
First Union-Lehman Brothers-Bank of America Commercial
Mortgage Trust, Series 1998-C2, Class A2
510 6.56Due 5/15/07 527
Mortgage Capital Funding, Inc. Commercial Mortgage Backed
Security, Series 1998-MC1, Class A2
605 7.00Due 1/18/08 636
- ------------------------------------------------------------------------------
TOTAL COLLATERALIZED MORTGAGE
OBLIGATIONS (Cost $1,562) $1,604
- ------------------------------------------------------------------------------
CORPORATE AND FOREIGN GOVERNMENT BONDS--8.7%
Financial--3.6%
Lehman Brothers Holdings, Inc.
Medium Term Note
$ 305 6.90%Due 1/29/01 $ 310
Lumbermens Mutual Casualty Co.
460 9.15Due 7/1/26 542
90 8.45Due 12/1/97 92
Ford Motor Credit Co.
800 6.00Due 1/14/03 812
Salomon, Inc. Medium Term Note
650 6.65Due 7/15/01 667
-------
2,423
-------
</TABLE>
See accompanying notes to financial statements.
43
<PAGE>
The Northern Institutional Funds
Equity Portfolios
- --------------------------------------------------------------------------------
Statements of Investments
November 30, 1998
(All amounts in thousands, except shares)
<TABLE>
<CAPTION>
Principal
Amount Description Value
- -------------------------------------------------------------------
Balanced Portfolio--Continued
<C> <S> <C>
Industrial--1.2%
Penney (J.C.), Inc.
$ 830 6.90%Due 8/15/26, putable 08/15/03 $ 858
-------
Sanitary Services--1.7%
WMX Technologies, Inc.
285 8.25Due 11/15/99 292
800 7.10Due 8/1/26, putable 08/01/03 849
-------
1,141
-------
Sovereign--1.0%
Quebec Province, Canada Medium Term Note
600 7.22Due 7/22/36, putable 7/22/06 and 7/22/16 695
-------
Utility--1.2%
Tenaga Nasional Berhad
1,000 7.20Due 4/29/07, putable 4/29/02 825
- -------------------------------------------------------------------
TOTAL CORPORATE AND FOREIGN GOVERNMENT BONDS (Cost
$5,943) $ 5,942
- -------------------------------------------------------------------
U.S. GOVERNMENT AGENCIES--4.3%
Fannie Mae REMIC Trust--2.5%
Series 1991-37, Class G
$ 27 8.15%Due 8/25/05 $ 27
Series 1996-M4, Class A
190 7.75Due 3/17/17 195
Series 92-200, Class E
236 6.25Due 6/25/17 236
Pool #440700
1,313 6.00Due 11/1/28 1,296
-------
1,754
-------
Freddie Mac REMIC Trust--1.8%
Pool #G00767
620 7.50Due 8/1/27 636
Pool #C18079
571 6.00Due 11/1/28 564
-------
1,200
- -------------------------------------------------------------------
TOTAL U.S. GOVERNMENT AGENCIES (Cost $2,938) $ 2,954
- -------------------------------------------------------------------
U.S. GOVERNMENT OBLIGATIONS--13.1%
U.S. Treasury Notes--13.1%
$ 700 5.625%Due 10/31/99 $ 706
500 7.75Due 1/31/00 517
1,925 7.75Due 2/15/01 2,050
1,470 6.625Due 7/31/01 1,542
2,475 7.50Due 2/15/05 2,835
1,300 3.625Due 1/15/08 1,306
- -------------------------------------------------------------------
TOTAL U.S. GOVERNMENT OBLIGATIONS
(Cost $8,849) $ 8,956
- -------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount Description Value
- ----------------------------------------------
<C> <S> <C>
FLOATING RATE BANK NOTES--1.9%
Lloyds Bank PLC
$ 800 6.00%Due 12/15/98 $ 661
National Westminster Bank
800 5.375Due 11/30/98 633
- ----------------------------------------------
TOTAL FLOATING RATE BANK NOTES
(Cost $1,417) $ 1,294
- ----------------------------------------------
SHORT-TERM INVESTMENT--8.5%
Societe Generale, Paris
$5,828 5.375%Due 12/1/98 $ 5,828
- ----------------------------------------------
TOTAL SHORT-TERM INVESTMENT (Cost
$5,828) $ 5,828
- ----------------------------------------------
TOTAL INVESTMENTS--99.3%
(Cost $53,632) $67,732
- ----------------------------------------------
Other assets, less liabilities--0.7% 448
- ----------------------------------------------
NET ASSETS--100.0% $68,180
- ----------------------------------------------
- ----------------------------------------------
</TABLE>
*Non-income producing security.
See accompanying notes to financial statements.
44
<PAGE>
Northern Institutional Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
November 30, 1998
(All amounts in thousands, except shares)
<TABLE>
<CAPTION>
Shares Description Value
- --------------------------------------------------------
DIVERSIFIED GROWTH PORTFOLIO
<C> <S> <C>
COMMON STOCKS--94.6%
ADVERTISING--1.4%
14,000 Interpublic Group of Cos., Inc. $ 963
44,100 Snyder Communications, Inc. 1,567
-------
2,530
-------
BANKING--2.4%
23,000 Banc One Corp. 1,180
6,000 Fifth Third Bancorp 398
17,500 First Union Corp. 1,063
9,200 State Street Corp. 631
26,000 Wells Fargo & Co. 936
-------
4,208
-------
BEVERAGES--3.5%
14,000 Anheuser-Busch Cos., Inc. 849
28,000 Coca-Cola (The) Co. 1,962
40,800 PepsiCo, Inc. 1,578
42,000 Starbucks Corp.* 1,936
-------
6,325
-------
CHEMICALS--0.6%
18,000 du Pont (E.I.) de Nemours & Co. 1,058
-------
COMMERCIAL SERVICES--2.0%
33,400 Cintus Corp. 1,837
35,000 Paycheck, Inc. 1,741
-------
3,578
-------
COMPUTERS--5.9%
41,175 Cisco Systems, Inc.* 3,104
44,800 Computer Sciences Corp.* 2,559
21,600 Dell Computer Corp.* 1,314
10,500 EMC Corp. 761
17,500 International Business Machines Corp. 2,888
-------
10,626
-------
CONSUMER PRODUCTS--2.5%
64,000 Philip Morris Cos., Inc. 3,580
28,000 UST, Inc. 973
-------
4,553
-------
COSMETICS AND PERSONAL CARE--2.2%
26,000 Gillette Co. 1,194
31,500 Procter & Gamble Co. 2,759
-------
3,953
-------
DIVERSIFIED FINANCIAL SERVICES--7.3%
12,600 American Express Co. 1,261
65,700 Fannie Mae 4,779
56,000 Freddie Mac 3,388
23,000 MBNA Corp. 522
6,800 Merrill Lynch & Co. 510
18,000 Price (T. Rowe) Associates, Inc. 644
34,000 Schwab (Charles) Corp. 1,917
-------
13,021
-------
ELECTRIC--1.0%
22,000 Cinergy Corp. 760
17,000 Duke Energy Corp. 1,064
-------
1,824
-------
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- ---------------------------------------------------------------
<C> <S> <C>
ELECTRICAL COMPONENTS AND EQUIPMENT--0.9%
25,000 Emerson Electric Co. $ 1,625
-------
ELECTRONICS--0.8%
22,000 Solectron Corp.* 1,456
-------
HEALTH CARE--4.6%
34,000 Becton Dickinson & Co. 1,445
5,500 Guidant Corp. 472
87,800 Health Management Associates, Inc., Class A* 1,904
30,000 Johnson & Johnson Co. 2,438
28,000 Medtronic, Inc. 1,895
-------
8,154
-------
HOUSEWARES--0.9%
36,700 Newell Co. 1,624
-------
INSURANCE--4.2%
20,000 Allstate Corp. 815
48,775 American International Group, Inc. 4,584
26,800 MBIA, Inc. 1,735
8,000 Nationwide Financial Services, Class A 385
-------
7,519
-------
LEISURE TIME--1.0%
53,800 Carnival Corp., Class A 1,856
-------
MEDIA--2.2%
38,000 Disney (The Walt) Co. 1,223
50,200 Fox Entertainment Group, Inc.* 1,186
15,000 Time Warner, Inc. 1,586
-------
3,995
-------
MISCELLANEOUS MANUFACTURING--3.9%
61,500 General Electric Co. 5,566
21,800 Tyco International Ltd. 1,435
-------
7,001
-------
OFFICE AND BUSINESS EQUIPMENT--0.4%
6,500 Xerox Corp. 699
-------
OIL AND GAS PRODUCERS--10.5%
32,000 Chevron Corp. 2,676
72,000 Conoco, Inc.* 1,706
60,800 Exxon Corp. 4,564
54,700 Mobil Corp. 4,714
63,800 Royal Dutch Petroleum Co. ADR 2,999
48,800 Schlumberger Ltd. ADR 2,181
-------
18,840
-------
PHARMACEUTICALS--10.0%
19,000 Bristol-Myers Squibb Co. 2,329
27,000 Cardinal Health, Inc. 1,853
31,000 Elan Corp. PLC* 2,112
24,000 Lilly (Eli) & Co. 2,153
24,400 Merck & Co., Inc. 3,779
27,000 Pfizer, Inc. 3,014
11,800 Schering-Plough Corp. 1,255
18,000 Warner-Lambert Co. 1,359
-------
17,854
-------
</TABLE>
See accompanying notes to financial statements.
45
<PAGE>
Northern Institutional Funds
Equity Portfolios
- --------------------------------------------------------------------------------
Statements of Investments
November 30, 1998
(All amounts in thousands, except shares)
<TABLE>
<CAPTION>
Shares Description Value
- -----------------------------------------------------------
Diversified Growth Portfolio--Continued
<C> <S> <C>
Retail--9.9%
14,000 Albertson's, Inc. $ 799
34,000 Dayton-Hudson Corp. 1,530
14,000 Gap (The), Inc. 1,030
72,100 Home Depot (The), Inc. 3,587
36,000 Kohl's Corp.* 1,771
53,775 Staples, Inc.* 1,879
48,000 Walgreen Co. 2,577
62,700 Wal-Mart Stores, Inc. 4,722
--------
17,895
--------
Semiconductors--2.7%
32,800 Intel Corp. 3,530
11,000 Motorola, Inc. 682
7,500 Texas Instruments, Inc. 573
--------
4,785
--------
Software--3.6%
47,000 Microsoft Corp.* 5,734
19,000 Oracle Corp.* 651
--------
6,385
--------
Telecommunication Equipment--2.6%
30,000 Lucent Technologies, Inc. 2,582
4,000 Nokia OYJ 392
30,000 Tellabs, Inc.* 1,622
--------
4,596
--------
Telephone--7.6%
48,000 Ameritech Corp. 2,598
32,700 AT&T Corp. 2,037
28,600 Bell Atlantic Corp. 1,591
34,000 BellSouth Corp. 2,967
33,000 MCI WORLDCOM, Inc.* 1,947
50,000 SBC Communications, Inc. 2,397
--------
13,537
- -----------------------------------------------------------
TOTAL COMMON STOCKS (Cost
$101,757) $169,497
- -----------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount Description Value
- -----------------------------------------------------------------------------
<C> <S> <C>
OTHER INVESTMENT--0.9%
$14,000 Standard and Poor's 500 Depository Receipt Unit Trust,
Series I 1,626
- -----------------------------------------------------------------------------
TOTAL OTHER INVESTMENT
(Cost $1,557) $ 1,626
- -----------------------------------------------------------------------------
U.S. GOVERNMENT OBLIGATION--0.2%
$365 U.S. Treasury Bill #
4.57% Due 1/28/99 $ 362
- -----------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT OBLIGATION (Cost $361) $ 362
- -----------------------------------------------------------------------------
SHORT-TERM INVESTMENT--4.3%
$7,649 Societe Generale, Paris, France
5.375% Due 12/1/98 $ 7,649
- -----------------------------------------------------------------------------
TOTAL SHORT-TERM INVESTMENT
(Cost $7,649) $ 7,649
- -----------------------------------------------------------------------------
TOTAL INVESTMENTS--100.0%
(Cost $111,324) $179,134
- -----------------------------------------------------------------------------
Liabilities, less other assets--0.0% (65)
- -----------------------------------------------------------------------------
NET ASSETS--100.0% $179,069
- -----------------------------------------------------------------------------
- -----------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
OPEN FUTURES CONTRACTS:
Number
of Contract Contract Contract Unrealized
Type Contracts Amount Position Expiration Gain
- --------------------------------------------------------
<S> <C> <C> <C> <C> <C>
S&P
500 24 $ 6,975 Long 12/18/98 $ 348
- --------------------------------------------------------
</TABLE>
*Non-income producing security.
#Security pledged to cover margin requirements for open futures contracts.
See accompanying notes to financial statements.
46
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Description Value
- -----------------------------------------------------
EQUITY INDEX PORTFOLIO
<C> <S> <C>
COMMON STOCKS--98.9%
ADVERTISING--0.2%
18,900 Interpublic Group Cos., Inc. $ 1,299
23,600 Omnicom Group, Inc. 1,261
--------
2,560
--------
AEROSPACE AND DEFENSE--1.5%
78,100 AlliedSignal, Inc. 3,436
140,600 Boeing (The) Co. 5,712
17,600 General Dynamics Corp. 1,022
10,300 Goodrich (B.F.) Co. 391
27,254 Lockheed Martin Corp.* 2,828
9,600 Northrop Grumman Corp. 780
47,100 Raytheon Co., Class B 2,608
31,700 United Technologies Corp. 3,398
--------
20,175
--------
AIRLINES--0.3%
25,400 AMR Corp.* 1,675
21,100 Delta Air Lines, Inc. 1,133
46,675 Southwest Airlines Co. 1,004
13,100 U.S. Airways Group, Inc.* 681
--------
4,493
--------
APPAREL--0.2%
10,000 Fruit of the Loom, Inc., Class A* 147
9,200 Liz Clairborne, Inc. 312
40,000 Nike, Inc. Class B 1,600
7,900 Reebok International Ltd.* 126
5,000 Russell Corp. 119
16,900 VF Corp. 829
--------
3,133
--------
AUTO MANUFACTURERS--1.2%
168,600 Ford Motor Co. 9,315
91,000 General Motors Corp. 6,370
9,320 Navistar International Corp.* 241
10,920 PACCAR, Inc. 497
--------
16,423
--------
AUTO PARTS AND EQUIPMENT--0.3%
10,800 Cooper Tire & Rubber Co. 211
22,984 Dana Corp. 896
24,875 Genuine Parts Co. 819
21,800 Goodyear Tire & Rubber (The) Co. 1,237
17,000 TRW, Inc. 936
--------
4,099
--------
BANKS--6.9%
104,000 Bank of New York Co., Inc. 3,562
162,942 Bank One Corp. 8,361
241,786 BankAmerica Corp. 15,761
40,900 BankBoston Corp. 1,702
13,400 Bankers Trust Corp. 1,166
39,800 BB&T Corp. 1,470
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- -------------------------------------------------------
<C> <S> <C>
119,192 Chase Manhattan Corp. $ 7,561
21,600 Comerica, Inc. 1,393
37,275 Fifth Third Bancorp 2,474
134,856 First Union Corp. 8,192
79,002 Fleet Financial Group, Inc. 3,293
29,450 Huntington Bancshares, Inc. 872
61,200 KeyCorp 1,878
36,300 Mellon Bank Corp. 2,285
21,100 Mercantile Bancorp, Inc. 930
24,600 Morgan (J.P.) & Co., Inc. 2,629
45,900 National City Corp. 3,087
42,000 PNC Bank Corp. 2,166
29,800 Regions Financial Corp. 1,155
15,000 Republic New York Corp. 701
22,500 State Street Corp. 1,544
24,200 Summit Bancorp 1,012
29,100 SunTrust Banks, Inc. 2,032
36,600 Synovus Financial Corp. 807
103,417 U.S. Bancorp 3,807
17,700 Union Planters Corp. 843
28,800 Wachovia Corp. 2,515
225,060 Wells Fargo & Co.* 8,102
--------
91,300
--------
BEVERAGES--3.0%
67,100 Anheuser-Busch Cos., Inc. 4,068
9,600 Brown-Forman Corp., Class B 698
343,100 Coca-Cola (The) Co. 24,038
56,300 Coca-Cola Enterprises 2,129
5,100 Coors (Adolph) Co., Class B 254
204,900 PepsiCo, Inc. 7,927
--------
39,114
--------
BIOTECHNOLOGY--0.6%
35,300 Amgen, Inc. 2,656
83,600 Monsanto Co. 3,788
33,600 Pioneer Hi-Bred International, Inc. 1,006
--------
7,450
--------
BUILDING MATERIALS--0.2%
5,600 Armstrong World Industries, Inc. 373
47,300 Masco Corp. 1,366
7,500 Owens Corning Corp. 280
--------
2,019
--------
CHEMICALS--1.5%
32,200 Air Products & Chemicals, Inc. 1,228
31,200 Dow Chemical Co. 3,038
157,500 Du Pont (E.I.) de Nemours & Co. 9,253
11,075 Eastman Chemical Co. 642
20,087 Engelhard Corp. 388
8,200 Great Lakes Chemical Corp. 327
13,200 Hercules, Inc. 434
18,100 Morton International Inc. 533
9,200 Nalco Chemical Co. 308
22,000 Praxair, Inc. 840
</TABLE>
See accompanying notes to financial statements.
47
<PAGE>
Northern Institutional Funds
Equity Portfolios
- --------------------------------------------------------------------------------
Statements of Investments
November 30, 1998
(All amounts in thousands, except shares)
<TABLE>
<CAPTION>
Shares Description Value
- ----------------------------------------------------------------
Equity Index Portfolio--Continued
<C> <S> <C>
24,800 Rohm & Haas Co. $ 866
24,100 Sherwin-Williams Co. 684
14,000 Sigma-Aldrich Corp. 450
18,800 Union Carbide Corp. 841
10,600 W.R. Grace & Company* 175
--------
20,007
--------
Commercial Services--0.6%
14,000 H & R Block, Inc. 629
119,411 Cendant Corp.* 2,269
11,200 Deluxe Corp. 389
23,800 Dun & Bradstreet (The) Corp. 718
18,000 Ecolab, Inc. 557
20,600 Equifax, Inc. 855
22,700 Paychex, Inc. 1,129
35,800 Service Corp. International 1,338
--------
7,884
--------
Computers--6.6%
49,900 3Com Corp.* 1,931
18,700 Apple Computer, Inc.* 597
30,000 Ascend Communications, Inc.* 1,686
22,900 Cabletron Systems, Inc.* 321
10,100 Ceridian Corp.* 657
216,375 Cisco Systems, Inc.* 16,309
232,557 Compaq Computer Corp. 7,558
22,000 Computer Sciences Corp.* 1,257
6,900 Data General Corp.* 125
176,100 Dell Computer Corp.* 10,709
68,500 Electronic Data Systems Corp. 2,671
69,500 EMC Corp.* 5,039
21,700 Gateway 2000, Inc.* 1,218
144,600 Hewlett-Packard Co. 9,074
129,800 International Business Machines Corp. 21,417
33,800 Seagate Technology, Inc.* 997
26,300 Silicon Graphics, Inc.* 322
52,700 Sun Microsystems, Inc.* 3,903
35,400 Unisys Corp.* 1,009
--------
86,800
--------
Cosmetics and Personal Care--2.5%
7,700 Alberto-Culver Co., Class B 197
36,600 Avon Products, Inc. 1,487
41,100 Colgate-Palmolive Co. 3,519
156,200 Gillette Co. 7,175
14,900 International Flavors & Fragrances, Inc. 624
76,184 Kimberly-Clark Corp. 4,009
186,600 Procter & Gamble Co. 16,351
--------
33,362
--------
Diversified Financial Services--5.0%
63,500 American Express Co. 6,354
48,207 Associates First Capital Corp., Class A 3,754
15,800 Bear Stearns Cos., Inc. 664
9,200 Capital One Financial Corp. 1,012
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- -------------------------------------------------------------
<C> <S> <C>
318,087 Citigroup, Inc.* $ 15,964
15,500 Countrywide Credit Industries, Inc. 767
144,300 Fannie Mae 10,498
35,200 Franklin Resources, Inc. 1,505
94,400 Freddie Mac 5,711
68,499 Household International, Inc. 2,680
16,500 Lehman Brothers Holdings, Inc. 824
104,630 MBNA Corp. 2,374
48,500 Merrill Lynch & Co., Inc. 3,637
81,449 Morgan Stanley, Dean Witter & Co. 5,681
13,200 Providian Financial Corp. 1,212
37,150 Schwab (Charles) Corp. 2,094
23,300 SLM Holding Corp. 1,025
--------
65,756
--------
Electric--2.5%
24,500 AES Corp.* 1,121
19,100 Ameren Corp. 787
26,600 American Electric Power Co. 1,234
20,700 Baltimore Gas & Electric Co. 635
21,100 Carolina Power & Light Co. 979
29,600 Central & South West Corp. 814
22,010 Cinergy Corp. 761
32,500 Consolidated Edison Co. of New York, Inc. 1,651
27,300 Dominion Resources, Inc. 1,261
20,200 DTE Energy Co. 881
50,243 Duke Energy Corp. 3,143
49,200 Edison International 1,353
34,300 Entergy Corp. 1,005
33,000 FirstEnergy Corporation 1,021
25,200 FPL Group, Inc. 1,544
17,800 GPU, Inc. 780
41,218 Houston Industries, Inc. 1,304
15,500 New Century Energies, Inc. 745
26,100 Niagara Mohawk Power Corp.* 401
21,100 Northern States Power Co. 574
41,400 PacifiCorp 776
31,000 Peco Energy Co. 1,244
53,200 PG&E Corp. 1,646
21,000 PP&L Resources, Inc. 574
32,300 Public Service Enterprise Group, Inc. 1,260
97,100 Southern Co. 2,864
38,912 Texas Utilities Co. 1,734
30,200 Unicom Corp. 1,138
--------
33,230
--------
Electrical Components and Equipment--0.3%
61,300 Emerson Electric Co. 3,985
--------
Electronics--0.4%
30,456 AMP, Inc. 1,473
6,400 EG&G, Inc. 179
17,600 Honeywell, Inc. 1,407
11,800 Johnson Controls, Inc. 683
6,100 Millipore Corp. 172
15,425 Parker Hannifin Corp. 536
6,800 Perkin-Elmer Corp. 634
</TABLE>
See accompanying notes to financial statements.
48
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Description Value
- ----------------------------------------------------------
<C> <S> <C>
6,600 Tektronix, Inc. $ 177
7,900 Thomas & Betts Corp. 342
--------
5,603
--------
Engineering and Construction--0.0%
11,000 Fluor Corp. 471
5,700 Foster Wheeler Corp. 98
--------
569
--------
Entertainment--0.0%
14,100 Harrah's Entertainment, Inc.* 219
25,000 Mirage Resorts, Inc.* 372
--------
591
--------
Environmental Control--0.3%
24,200 Browning-Ferris Industries, Inc. 714
79,585 Waste Management, Inc. 3,412
--------
4,126
--------
Food--2.8%
34,200 Albertson's, Inc. 1,952
38,200 American Stores Co. 1,282
83,370 Archer-Daniels-Midland Co. 1,532
40,000 Bestfoods 2,325
62,500 Campbell Soup Co. 3,570
67,900 ConAgra, Inc. 2,135
21,500 General Mills, Inc. 1,623
5,300 Great Atlantic & Pacific Tea Co., Inc. 145
50,400 Heinz (H.J.) Co. 2,939
19,900 Hershey Foods Corp. 1,338
56,600 Kellogg Co. 2,073
35,700 Kroger Co.* 1,894
19,900 Quaker Oats Co. 1,166
43,400 Ralston-Ralston Purina Group 1,511
67,700 Safeway, Inc.* 3,575
65,000 Sara Lee Corp. 3,794
16,800 Supervalu, Inc. 434
47,000 Sysco Corp. 1,266
20,700 Winn-Dixie Stores, Inc. 834
16,200 Wrigley (W.M.) Jr. Co. 1,428
--------
36,816
--------
Forest Products and Paper--0.7%
7,800 Boise Cascade Corp. 247
13,300 Champion International Corp. 553
30,700 Fort James Corp. 1,201
13,000 Georgia-Pacific Corp. 738
42,735 International Paper Co. 1,856
15,300 Louisiana-Pacific Corp. 260
14,400 Mead Corp. 437
4,000 Potlatch Corp. 151
396 Smurfit-Stone Container Corp. 6
7,700 Temple-Inland, Inc. 413
9,600 Union Camp Corp. 621
14,050 Westvaco Corp. 395
27,700 Weyerhaeuser Co. 1,388
15,500 Willamette Industries, Inc. 542
--------
8,808
--------
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- -----------------------------------------------------
<C> <S> <C>
Gas--0.1%
3,100 Eastern Enterprises $ 126
6,600 NICOR, Inc. 278
4,400 ONEOK, Inc. 153
4,900 Peoples Energy Corp. 185
33,493 Sempra Energy* 839
--------
1,581
--------
Hand and Machine Tools--0.2%
12,900 Black & Decker Corp. 699
13,600 Grainger (W.W.), Inc. 575
5,500 Milacron, Inc. 111
8,200 Snap-On, Inc. 279
12,400 Stanley Works (The) 379
--------
2,043
--------
Health Care--2.7%
9,100 Allergan, Inc. 554
7,800 Bard (C.R.), Inc. 357
7,800 Bausch & Lomb, Inc. 433
39,700 Baxter International, Inc. 2,523
34,400 Becton, Dickinson & Co. 1,462
15,600 Biomet, Inc. 597
27,200 Boston Scientific Corp.* 1,346
89,795 Columbia/HCA Healthcare Corp. 2,211
21,000 Guidant Corp. 1,802
58,800 HEALTHSOUTH Corp.* 790
23,200 Humana, Inc.* 460
187,100 Johnson & Johnson 15,202
10,200 Mallinckrodt, Inc. 330
15,050 Manor Care, Inc.* 478
65,300 Medtronic, Inc. 4,420
11,700 St. Jude Medical, Inc.* 340
42,900 Tenet Healthcare Corp.* 1,268
27,200 United Healthcare Corp. 1,227
--------
35,800
--------
Holding Companies--Diversified--0.1%
48,200 Seagram (The) Co. Ltd. 1,654
--------
Home Builders--0.1%
8,300 Centex Corp. 296
4,800 Fleetwood Enterprises Inc. 162
5,500 Kaufman & Broad Home Corp. 139
6,000 Pulte Corp. 153
--------
750
--------
Home Furnishings--0.1%
12,700 Maytag Corp. 687
10,600 Whirlpool Corp. 594
--------
1,281
--------
Household Products and Wares--0.9%
9,800 American Greetings Corp., Class A 415
16,300 Avery-Dennison Corp. 781
14,500 Clorox Co. 1,610
24,000 Fortune Brands, Inc. 818
5,100 Jostens, Inc. 120
</TABLE>
See accompanying notes to financial statements.
49
<PAGE>
Northern Institutional Funds
Equity Portfolios
- --------------------------------------------------------------------------------
Statements of Investments
November 30, 1998
(All amounts in thousands, except shares)
<TABLE>
<CAPTION>
Shares Description Value
- ---------------------------------------------------------------
Equity Index Portfolio--Continued
<C> <S> <C>
12,300 Moore Corp. Ltd. $ 135
20,900 Rubbermaid, Inc. 691
8,000 Tupperware Corp. 140
89,100 Unilever N.V., New York Shares 6,889
--------
11,599
--------
Housewares--0.1%
22,600 Newell Co. 1,000
--------
Insurance--3.9%
20,057 Aetna, Inc. 1,551
115,330 Allstate Corp. 4,700
35,170 American General Corp. 2,477
146,068 American International Group, Inc. 13,730
23,500 AON Corp. 1,354
23,000 Chubb (The) Corp. 1,611
29,500 CIGNA Corp. 2,295
23,300 Cincinnati Financial Corp. 910
43,463 Conseco, Inc. 1,440
10,500 General Re Corp. 2,452
32,500 Hartford Financial Services Group, Inc. 1,794
14,737 Jefferson-Pilot Corp. 1,006
14,000 Lincoln National Corp. 1,172
16,000 Loews Corp. 1,600
35,550 Marsh & McLennan Cos., Inc. 2,069
13,800 MBIA, Inc. 894
15,800 MGIC Investment Corp. 694
10,100 Progressive Corp. 1,499
18,800 Provident Companies, Inc. 723
19,600 SAFECO Corp. 842
32,844 St. Paul Cos., Inc. 1,158
28,800 SunAmerica, Inc. 2,282
19,500 Torchmark Corp. 741
8,700 Transamerica Corp. 924
19,200 UNUM Corp. 1,034
--------
50,952
--------
Iron and Steel--0.1%
27,427 Allegheny Teledyne, Inc. 564
500 Armco, Inc. 2
18,000 Bethlehem Steel Corp.* 149
12,300 Nucor Corp. 517
12,300 USX-U.S. Steel Group, Inc. 301
--------
1,533
--------
Leisure Time--0.0%
13,800 Brunswick Corp. 304
--------
Lodging--0.1%
36,300 Hilton Hotels Corp. 790
34,800 Marriott International, Inc. 1,022
--------
1,812
--------
Machinery--Construction and Mining--0.2%
10,400 Case Corp. 252
50,800 Caterpillar, Inc. 2,511
6,600 Harnischfeger Industries, Inc. 66
--------
2,829
--------
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- -----------------------------------------------------------------
<C> <S> <C>
Machinery--Diversified--0.3%
3,400 Briggs & Stratton Corp. $ 171
5,400 Cummins Engine Co., Inc. 200
34,100 Deere & Co. 1,191
31,000 Dover Corp. 1,104
22,950 Ingersoll-Rand Co. 1,074
8,200 McDermott International, Inc. 220
1,100 NACCO Industries, Inc., Class A 96
23,100 Thermo Electron Corp.* 390
--------
4,446
--------
Media--3.3%
99,600 CBS Corp.* 2,969
34,600 Clear Channel Communications, Inc.* 1,618
51,400 Comcast Corp., Class A 2,499
285,100 Disney (The Walt) Co. 9,177
19,400 Donnelley (R.R.) & Sons Co. 823
13,000 Dow Jones & Co., Inc. 622
39,600 Gannett Co., Inc. 2,557
10,200 King World Productions, Inc.* 278
11,000 Knight-Ridder, Inc. 566
13,800 McGraw-Hill Cos., Inc. 1,235
84,800 MediaOne Group, Inc.* 3,434
7,300 Meredith Corp. 283
26,400 New York Times Co., Class A 820
72,800 Tele-Communications, Inc., Class A 3,076
83,400 Time Warner, Inc. 8,820
12,100 Times Mirror Co., Class A 709
17,000 Tribune Co. 1,090
49,800 Viacom, Inc., Class B* 3,315
--------
43,891
--------
Metal Fabricate and Hardware--0.0%
8,700 Timken (The) Co. 167
13,475 Worthington Industries, Inc. 164
--------
331
--------
Metals--Diversified--0.4%
31,700 Alcan Aluminium Ltd. 844
26,000 Aluminum Co. of America 1,927
5,500 ASARCO, Inc. 107
25,000 Freeport-McMoRan Copper & Gold, Inc., Class B 327
23,100 Inco Ltd. 267
8,200 Phelps Dodge Corp. 465
34,800 Placer Dome, Inc. 507
10,000 Reynolds Metals Co. 549
--------
4,993
--------
Mining--0.2%
51,900 Barrick Gold Corp. 1,038
32,000 Battle Mountain Gold Co. 150
13,050 Cyprus Amax Minerals Co. 148
29,400 Homestake Mining Co. 316
23,297 Newmont Mining Corp. 463
--------
2,115
--------
</TABLE>
See accompanying notes to financial statements.
50
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Description Value
- --------------------------------------------------------
<C> <S> <C>
Miscellaneous Manufacturing--5.1%
3,900 Aeroquip-Vickers, Inc. $ 142
16,200 Cooper Industries, Inc. 796
32,300 Corning, Inc. 1,296
9,600 Crane Co. 310
18,600 Danaher Corp. 849
44,900 Eastman Kodak Co. 3,258
9,900 Eaton Corp. 676
4,800 FMC Corp.* 279
452,700 General Electric Co. 40,969
34,800 Illinois Tool Works, Inc. 2,212
16,500 ITT Industries, Inc. 594
56,200 Minnesota Mining & Manufacturing Co. 4,514
5,800 National Service Industries, Inc. 224
17,266 Pall Corp. 401
6,100 Polaroid Corp. 130
24,600 PPG Industries, Inc. 1,505
11,700 Raychem Corp. 399
23,600 Tenneco, Inc. 841
22,800 Textron, Inc. 1,771
89,644 Tyco International Ltd. 5,900
--------
67,066
--------
Office and Business Equipment--0.6%
11,100 Harris Corp. 421
38,200 Pitney Bowes, Inc. 2,139
45,700 Xerox Corp. 4,913
--------
7,473
--------
Oil and Gas Producers--6.2%
12,700 Amerada Hess Corp. 705
132,800 Amoco Corp. 7,827
16,700 Anadarko Petroleum Corp. 471
13,700 Apache Corp. 315
10,600 Ashland, Inc. 515
44,700 Atlantic Richfield Co. 2,973
24,652 Burlington Resources, Inc. 878
91,100 Chevron Corp. 7,618
29,600 Coastal Corp. 1,032
339,300 Exxon Corp. 25,469
7,000 Helmerich & Payne, Inc. 121
6,600 Kerr-McGee Corp. 261
108,800 Mobil Corp. 9,377
49,100 Occidental Petroleum Corp. 994
14,800 Oryx Energy Co.* 204
6,600 Pennzoil Co. 245
36,000 Phillips Petroleum Co. 1,512
11,900 Rowan Cos., Inc.* 117
298,400 Royal Dutch Petroleum Co. 14,025
13,000 Sunoco, Inc. 440
74,600 Texaco, Inc. 4,294
34,976 Union Pacific Resources Group, Inc. 391
33,600 Unocal Corp. 1,138
42,800 USX-Marathon Group, Inc. 1,214
--------
82,136
--------
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- ------------------------------------------------------
<C> <S> <C>
Oil and Gas Services--0.5%
44,240 Baker Hughes, Inc. $ 810
61,100 Halliburton Co. 1,795
75,700 Schlumberger Ltd. 3,383
--------
5,988
--------
Packaging and Containers--0.2%
4,200 Ball Corp. 180
7,400 Bemis Co. 280
17,300 Crown Cork & Seal Co., Inc. 584
21,600 Owens-Illinois, Inc.* 694
11,606 Sealed Air Corp.* 512
--------
2,250
--------
Pharmaceuticals--9.3%
214,300 Abbott Laboratories 10,286
12,000 ALZA Corp.* 627
183,100 American Home Products Corp. 9,750
138,400 Bristol-Myers Squibb Co. 16,963
27,850 Cardinal Health, Inc. 1,911
153,196 Lilly (Eli) & Co. 13,740
165,700 Merck & Co., Inc. 25,663
181,800 Pfizer, Inc. 20,293
70,720 Pharmacia & Upjohn, Inc. 3,682
102,100 Schering-Plough Corp. 10,861
114,200 Warner-Lambert Co. 8,622
--------
122,398
--------
Pipelines--0.5%
11,600 Columbia Energy Group 658
13,300 Consolidated Natural Gas Co. 722
45,800 Enron Corp. 2,407
15,300 Sonat, Inc. 454
59,100 Williams (The) Cos., Inc. 1,703
--------
5,944
--------
Retail--6.1%
21,300 Autozone, Inc.* 642
13,900 Circuit City Stores, Inc. 503
15,200 Consolidated Stores Corp.* 327
30,103 Costco Cos., Inc.* 1,889
54,200 CVS Corp. 2,676
19,400 Darden Restaurants, Inc. 307
61,100 Dayton-Hudson Corp. 2,750
15,400 Dillards, Inc., Class A 529
25,700 Dollar General 612
29,300 Federated Department Stores, Inc.* 1,221
21,400 Fred Meyer, Inc.* 1,089
54,700 Gap (The), Inc. 4,024
9,900 Harcourt General, Inc. 512
204,500 Home Depot (The), Inc. 10,174
18,900 IKON Office Solutions, Inc. 184
68,500 KMart Corp.* 1,045
22,000 Kohl's Corp.* 1,082
31,700 Limited (The), Inc. 917
5,400 Longs Drug Stores, Inc. 192
48,900 Lowe's Cos., Inc. 2,066
</TABLE>
See accompanying notes to financial statements.
51
<PAGE>
Northern Institutional Funds
Equity Portfolios
- --------------------------------------------------------------------------------
Statements of Investments
November 30, 1998
(All amounts in thousands, except shares)
<TABLE>
<CAPTION>
Shares Description Value
- -----------------------------------------------------------
Equity Index Portfolio--Continued
<C> <S> <C>
32,100 MAY Department Stores Co. $ 1,936
95,300 McDonald's Corp. 6,677
20,700 Nordstrom, Inc. 771
35,200 Penney (J.C.) Co., Inc. 1,936
8,900 Pep Boys-Manny, Moe & Jack 126
36,000 Rite Aid Corp. 1,670
54,600 Sears, Roebuck & Co. 2,590
40,000 Staples, Inc.* 1,398
14,000 Tandy Corp. 631
44,100 TJX Cos., Inc. 1,130
36,400 Toys "R" Us, Inc.* 719
21,230 Tricon Global Restaurants* 967
18,800 Venator Group, Inc* 148
69,200 Walgreen Co. 3,715
311,100 Wal-Mart Stores, Inc. 23,430
17,700 Wendy's International, Inc. 354
--------
80,939
--------
Savings and Loans--0.3%
8,000 Golden West Financial Corp. 758
82,461 Washington Mutual, Inc. 3,195
--------
3,953
--------
Semiconductors--3.1%
20,000 Advanced Micro Devices, Inc.* 554
51,000 Applied Materials, Inc.* 1,976
233,800 Intel Corp. 25,163
12,100 KLA-Tencor Corp.* 412
19,600 LSI Logic Corp.* 304
29,600 Micron Technology, Inc.* 1,223
83,200 Motorola, Inc. 5,158
22,900 National Semiconductor Corp.* 329
26,600 Rockwell International Corp. 1,302
54,300 Texas Instruments, Inc. 4,147
--------
40,568
--------
Software--4.7%
9,400 Adobe Systems, Inc. 421
6,500 Autodesk, Inc. 236
41,900 Automatic Data Processing, Inc. 3,226
28,700 BMC Software, Inc.* 1,465
78,125 Computer Associates International, Inc. 3,457
62,200 First Data Corp. 1,660
60,000 HBO & Co. 1,496
23,100 IMS Health, Inc. 1,533
342,900 Microsoft Corp.* 41,834
49,200 Novell, Inc.* 815
135,400 Oracle Corp.* 4,637
37,900 Parametric Technology Corp.* 644
32,100 Peoplesoft, Inc.* 660
3,700 Shared Medical Systems Corp. 194
--------
62,278
--------
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- -------------------------------------------------------
<S> <C> <C>
Telecommunication Equipment--1.7%
12,030 Andrew Corp.* $ 192
21,000 General Instrument Corp.* 591
182,928 Lucent Technologies, Inc. 15,743
90,760 Northern Telecom Ltd. 4,237
10,400 Scientific-Atlanta, Inc. 202
27,000 Tellabs, Inc.* 1,460
--------
22,425
--------
Telecommunications--0.6%
79,800 AirTouch Communications, Inc.* 4,564
23,900 Frontier Corp. 720
39,800 Nextel Communications, Inc., Class A 856
57,450 Sprint Corp. (PCS Group)* 919
--------
7,059
--------
Telephone--7.2%
38,100 Alltel Corp. 2,019
153,400 Ameritech Corp. 8,303
251,300 AT&T Corp. 15,659
216,160 Bell Atlantic Corp. 12,024
136,900 Bellsouth Corporation 11,945
134,100 GTE Corp. 8,314
247,170 MCI WORLDCOM, Inc.* 14,583
272,312 SBC Communications, Inc. 13,054
59,800 Sprint Corp. (FON Group) 4,350
69,832 U.S. West, Inc. 4,347
--------
94,598
--------
Textiles--0.0%
2,600 Springs Industries, Inc. 101
--------
Tobacco--1.6%
338,400 Philip Morris Companies, Inc. 18,929
45,200 RJR Nabisco Holdings Corp. 1,302
25,800 UST, Inc. 897
--------
21,128
--------
Toys, Games and Hobbies--0.2%
18,275 Hasbro, Inc. 641
40,745 Mattel, Inc. 1,408
--------
2,049
--------
Transportation--0.6%
65,795 Burlington Northern Santa Fe Corp. 2,237
30,400 CSX Corp. 1,267
20,560 FDX Corp.* 1,334
45,900 Laidlaw, Inc. 456
52,700 Norfolk Southern Corp. 1,601
34,400 Union Pacific Corp. 1,673
--------
8,568
--------
</TABLE>
See accompanying notes to financial statements.
52
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares/
Principal
Amount Description Value
- ----------------------------------------------------------------
<C> <S> <C>
Trucking and Leasing--0.0%
10,200 Ryder System, Inc. $ 291
- ----------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $856,202) $1,304,429
- ----------------------------------------------------------------
U.S. GOVERNMENT OBLIGATION--0.1%
U.S. Treasury Bill #
$ 1,710 4.37% Due 01/07/99 $ 1,691
- ----------------------------------------------------------------
TOTAL U.S. GOVERNMENT OBLIGATION
(Cost $1,691) $ 1,691
- ----------------------------------------------------------------
SHORT-TERM INVESTMENT--4.6%
Societe Generale, Paris
$60,575 5.375%, 12/01/98 $ 60,575
- ----------------------------------------------------------------
TOTAL SHORT-TERM INVESTMENT
(Cost $60,575) $ 60,575
- ----------------------------------------------------------------
TOTAL INVESTMENTS--103.6%
(Cost $918,468) $1,366,695
- ----------------------------------------------------------------
Liabilities, less other assets--
(3.6)% (47,889)
- ----------------------------------------------------------------
NET ASSETS--100.0% $1,318,806
- ----------------------------------------------------------------
- ----------------------------------------------------------------
</TABLE>
OPEN FUTURES CONTRACTS:
<TABLE>
<CAPTION>
Number of Contract Contract Contract Unrealized
Type Contracts Amount Position Expiration Gain
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
S&P 500 47 $13,397 Long December, 1998 $262
- --------------------------------------------------------------------------------
</TABLE>
*Non-income producing security.
#Securities pledged to cover margin requirements for open futures contracts.
See accompanying notes to financial statements.
53
<PAGE>
Northern Institutional Funds
Equity Portfolios
- --------------------------------------------------------------------------------
Statements of Investments
November 30, 1998
(All amounts in thousands, except shares)
<TABLE>
<CAPTION>
Shares Description Value
- ---------------------------------------------------------
Focused Growth Portfolio
<C> <S> <C>
COMMON STOCKS--99.8%
Advertising--1.0%
40,400 Snyder Communications, Inc. $ 1,437
--------
Airlines--0.4%
25,000 Southwest Airlines Co. 538
--------
Banks--2.3%
29,200 State Street Corp. 2,004
31,650 Wells Fargo Co. 1,139
--------
3,143
--------
Beverages--3.2%
9,750 Anheuser-Busch Cos., Inc. 591
24,350 Coca-Cola (The) Co. 1,706
19,100 PepsiCo, Inc. 739
26,800 Starbucks Corp.* 1,236
--------
4,272
--------
Biotechnology--0.6%
12,200 Genentech, Inc.* 855
--------
Commercial Services--3.5%
10,000 Ceridian Corp. 650
29,200 Cintas Corp. 1,606
14,600 H & R Block, Inc. 656
35,000 Paychex, Inc. 1,741
--------
4,653
--------
Computers--5.7%
35,050 Cisco Systems, Inc.* 2,642
29,200 Computer Sciences Corp.* 1,668
12,200 Dell Computer Corp.* 742
9,750 EMC Corp. 707
8,750 International Business Machines Corp. 1,444
10,000 Synopsys, Inc.* 474
--------
7,677
--------
Consumer Products--2.3%
36,900 Philip Morris Cos., Inc. 2,065
29,200 UST, Inc. 1,015
--------
3,080
--------
Cosmetics and Personal Care--1.1%
17,550 Procter & Gamble Co. 1,538
--------
Diversified Financial Services--8.8%
9,750 Capital One Financial Corp. 1,072
36,250 Fannie Mae 2,637
34,750 Freddie Mac 2,102
80,350 MBNA Corp. 1,823
24,350 Merrill Lynch & Co. 1,826
40,000 Schwab (Charles) Corp. 2,255
--------
11,715
--------
Electrical Components and Equipment--0.5%
20,000 Molex, Inc. 721
--------
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- ---------------------------------------------------------------
<C> <S> <C>
Electronics--1.3%
10,000 Honeywell, Inc. $ 799
14,600 Solectron Corp.* 966
--------
1,765
--------
Health Care--5.8%
30,200 Becton, Dickinson & Co. 1,284
18,100 Guidant Corp. 1,553
97,400 Health Management Associates, Inc., Class A 2,112
9,750 Johnson & Johnson 792
30,200 Medtronic, Inc. 2,044
--------
7,785
--------
Housewares--1.3%
38,950 Newell Co. 1,724
--------
Insurance--4.3%
29,200 American International Group, Inc. 2,745
22,700 MBIA, Inc. 1,470
10,250 Progressive Corp. 1,521
--------
5,736
--------
Leisure Time--1.0%
38,950 Carnival Corp., Class A 1,344
--------
Media--3.8%
12,200 Clear Channel Communications, Inc.* 570
20,000 Disney (The Walt) Co. 644
53,200 Fox Entertainment Group, Inc.* 1,257
29,200 MediaOne Group, Inc.* 1,183
13,150 Time Warner, Inc. 1,391
--------
5,045
--------
Miscellaneous Manufacturing--4.4%
48,700 General Electric Co. 4,407
22,400 Tyco International Ltd. 1,474
--------
5,881
--------
Office and Business Equipment--1.3%
11,700 Pitney Bowes, Inc. 655
9,750 Xerox Corp. 1,048
--------
1,703
--------
Oil and Gas Producers--4.7%
43,850 Conoco, Inc.* 1,039
36,550 Exxon Corp. 2,744
29,200 Mobil Corp. 2,517
--------
6,300
--------
Oil and Gas Services--0.4%
12,800 Schlumberger Ltd. 572
--------
Pharmaceuticals--11.6%
29,250 Cardinal Health, Inc. 2,007
34,350 Elan Corp. PLC ADR* 2,340
24,350 Lilly (Eli) & Co. 2,184
16,550 Merck & Co., Inc. 2,563
24,350 Omnicare, Inc. 697
14,100 Pfizer, Inc. 1,574
22,900 Schering-Plough Corp. 2,436
21,900 Warner-Lambert Co. 1,653
--------
15,454
--------
</TABLE>
See accompanying notes to financial statements.
54
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares/
Principal
Amount Description Value
- ----------------------------------------------------------
Focused Growth Portfolio -- Continued
<C> <S> <C>
Pipelines--1.2%
31,650 Enron Corp. $ 1,664
--------
Retail--11.7%
16,550 Albertson's, Inc. 944
24,350 Dayton-Hudson Corp. 1,096
65,000 Home Depot (The), Inc. 3,234
43,850 Kohl's Corp.* 2,157
75,000 Staples, Inc.* 2,620
29,200 Walgreen Co. 1,568
53,550 Wal-Mart Stores, Inc. 4,033
--------
15,652
--------
Semiconductors--2.4%
14,600 Intel Corp. 1,571
12,650 Linear Technology Corp. 886
12,500 Motorola, Inc. 775
--------
3,232
--------
Software--6.6%
9,700 America Online, Inc.* 849
19,500 BMC Software* 996
14,600 Fiserv, Inc.* 645
33,100 Microsoft Corp.* 4,038
34,100 Oracle Corp.* 1,168
29,200 Sterling Commerce, Inc.* 1,059
--------
8,755
--------
Telecommunication Equipment--2.4%
19,500 Lucent Technologies, Inc. 1,678
25,000 Newbridge Networks Corp.* 731
13,400 Tellabs, Inc.* 724
--------
3,133
--------
Telecommunications--1.7%
19,500 Qwest Communications International* 780
9,750 Vodafone Group PLC ADR 1,440
--------
2,220
--------
Telephone--4.5%
34,100 Ameritech Corp. 1,846
23,400 Bellsouth Corp. 2,042
35,000 MCI WORLDCOM, Inc.* 2,065
--------
5,953
- ----------------------------------------------------------
TOTAL COMMON STOCKS (Cost $91,612) $133,547
- ----------------------------------------------------------
SHORT-TERM INVESTMENT--0.2%
Societe Generale, Paris, France
$278 5.375%Due 12/1/98 $ 278
- ----------------------------------------------------------
TOTAL SHORT-TERM INVESTMENT (Cost $278) $ 278
- ----------------------------------------------------------
TOTAL INVESTMENTS--100.0%
(Cost $91,890) $133,825
- ----------------------------------------------------------
Other assets, less liabilities--0.0% 53
- ----------------------------------------------------------
NET ASSETS--100.0% $133,878
- ----------------------------------------------------------
- ----------------------------------------------------------
</TABLE>
*Non-income producing security.
See accompanying notes to financial statements.
55
<PAGE>
Northern Institutional Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
November 30, 1998
(All amounts in thousands, except shares)
<TABLE>
<CAPTION>
Shares Description Value
- ----------------------------------------------------------
INTERNATIONAL EQUITY INDEX PORTFOLIO
<C> <S> <C>
COMMON STOCKS--96.7%
AUSTRALIA--2.2%
600 Aberfoyle Ltd. $ 1
4,400 Amcor Ltd. 19
1,800 Ashton Mining Ltd. 1
2,282 Australian Gas Light Co. Ltd. 17
5,100 Australian National Industries Ltd. 3
7,999 Boral Ltd. 12
1,600 Brambles Industries Ltd. 39
14,420 Broken Hill Proprietary Co. Ltd. 115
3,500 Burns Philp & Co. Ltd. 0
5,872 Coca-Cola Amatil Ltd. 20
8,052 Coles Myer Ltd. 42
6,400 Crown Ltd.* 2
7,200 CSR Ltd. 17
2,600 David Jones Ltd. 3
1,300 Delta Gold NL 2
2,001 Email Ltd. 3
1,022 Faulding (F.H.) & Co. Ltd. 5
11,900 Foster's Brewing Group Ltd. 31
3,209 Futuris Corp. Ltd. 4
9,134 General Property Trust Units 18
4,416 Gio Australia Holdings Ltd. 14
8,917 Goodman Fielder Ltd. 10
1,911 Great Central Mines Ltd. 1
2,800 Hardie (James) Industries Ltd. 5
408 Homestake Mining Co. 5
1,700 Leighton Holdings Ltd. 7
1,750 Lend Lease Corp. Ltd. 43
11,497 M.I.M. Holdings Ltd. 6
1,200 Metal Manufactures Ltd. 2
9,900 National Australia Bank 148
1,600 Newcrest Mining Ltd. 2
13,646 News Corp. Ltd. 96
11,570 Normandy Mining Ltd. 11
5,230 North Ltd. 10
1,885 Orica Ltd. 10
7,100 Pacific Dunlop Ltd. 13
6,200 Pioneer International Ltd. 13
2,698 QBE Insurance Group Ltd. 12
4,315 QCT Resources Ltd. 3
1,400 Resolute Ltd. 1
1,400 RGC Ltd. 3
2,300 Rio Tinto Ltd. 30
800 Rothmans Holdings Ltd. 5
4,200 Santos Ltd. 12
2,800 Schroders Property Fund 5
1,300 Smith (Howard) Ltd. 8
724 Sons of Gwalia Ltd. 2
4,326 Southcorp Holdings Ltd. 14
2,599 Stockland Trust Group 6
89 Stockland Trust Group (New)* 0
2,100 TABCORP Holdings Ltd. 14
8,916 Westfield Trust 21
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- ----------------------------------------------------------------------
<C> <S> <C>
13,169 Westpac Banking Corp. Ltd. $ 88
7,855 WMC Ltd. 25
260 Zimbabwe Platinum Mines Ltd. 0
-------
999
-------
AUSTRIA--0.3%
19 Austria Mikro Systeme International A.G. 1
168 Austrian Airlines Osterreichische LuftverkehrsA.G.* 5
639 Bank Austria A.G. 33
63 Bank Austria A.G. (Partial Certificates) 3
30 Bau Holdings A.G. 1
70 Bohler-Uddeholm A.G. 3
12 BWT A.G. 3
135 Flughafen Wien A.G. 6
45 Generali Holding Vienna A.G. 10
26 Lenzing 2
78 Mayr-Melnhof Karton A.G. 4
58 Oesterreichische Brau-Beteiligungs A.G. 3
200 Oesterreichische Elektrizitaetswirtschafts A.G. 31
175 OMV A.G. 17
90 Radex-Heraklith Industriebeteiligungs A.G. 2
72 Steyr-Daimler-Puch A.G. 2
33 Universale-Bau A.G. 1
97 VA Technologies A.G. 8
56 Wienerberger Baustoffindustrie A.G. 11
-------
146
-------
BELGIUM--1.6%
100 Barco Industries 27
18 Bekaert N.V. 10
220 Cimenteries CBR Cementbedrisven 19
100 Compagnie Maritime Belge S.A. 5
435 Delhaize-Le Lion 36
400 Electrabel S.A. 155
300 Fortis A.G. 95
100 Generale de Banque S.A. 37
100 Gevaert N.V. Warrants* 1
50 Glaverbel S.A. 6
200 Groupe Bruxelles Lambert S.A. 38
970 KBC Bancassurance Holding 70
160 Petrofina S.A. 65
118 Royale Belge 19
625 Solvay S.A. 44
625 Tractebel 105
150 Union Miniere Group 7
-------
739
-------
DENMARK--0.9%
12 Aarhus Oliefabrik A/S, Class A 1
12 Aarhus Oliefabrik A/S, Class B, Limited Voting 1
20 Aktieselskabet Korn-OG Foderstof KompagnietA/S 0
64 Bang & Olufsen Holdings A/S, Class B 4
231 Carlsberg A/S, Class A 13
178 Carlsberg A/S, Class B 10
</TABLE>
See accompanying notes to financial statements.
56
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Description Value
- ---------------------------------------------------------------
<C> <S> <C>
7 Dampskibsselskabet af 1912 A/S, Class B $ 48
5 Dampskibsselskabet Svendborg A/S, Class B 47
385 Danisco A/S 20
300 Den Danske Bank 40
85 Det Ostasiatiske Kompagni A/S* 0
280 FLS Industries A/S, Class B 6
206 GN Store Nord A/S 7
156 International Service System A/S, Class B 10
6 Lauritzen (J.) Holding A/S 0
29 NKT Holdings A/S 2
471 Novo-Nordisk A/S, Class B 54
45 Radiometer A/S, Class B 2
257 SAS Danmark A/S 3
164 Superfos A/S 2
799 Tele Danmark A/S 90
342 Unidanmark A/S, Class A 28
-------
388
-------
FINLAND--1.2%
200 Amer Group Ltd. 2
300 Cultor Oy 3
100 Instrumentarium Group, Class A 4
100 Instrumentarium Group, Class A Rights* 1
900 Kemira Oy 6
700 Kesko 9
5,700 Merita Ltd., Class A 33
100 Metra Oy, Class A 2
300 Metra Oy, Class B 5
3,100 Nokia AB, Class A 304
900 Nokia AB, Class K 88
1,000 Outokumpu Oy, Class A 10
100 Pohjola Insurance Group, Class A 5
100 Pohjola Insurance Group, Class B 5
400 Sampo Insurance Co. Ltd., Class A 14
200 Stockman AB, Class A 5
200 Stockman AB, Class B 4
1,800 Upm-Kymmene Corp. 47
-------
547
-------
FRANCE--9.5%
200 Accor S.A. 44
1,080 Air Liquide 184
1,170 Alcatel Alsthom 155
27 Assurances Generales de France S.A. Warrants* 0
2,100 AXA-UAP 272
1,321 Banque Nationale de Paris 101
10 Bongrain S.A. 4
150 Bouygues 28
190 Canal Plus 44
400 Cap Gemini S.A. 59
235 Carrefour S.A. 167
50 Chargeurs S.A. 3
100 Club Mediterranee* 8
50 Coflexip Stena Offshore 4
557 Compagnie de Saint Gobain 83
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- -------------------------------------------------------------------------------
<C> <S> <C>
100 Compagnie Francaise d'Etudes et de Construction Technip $ 8
50 Compagnie Generale de Geophysique S.A.* 3
75 Compagnie Parisienne de Reescompte 4
455 Danone 133
600 Dassault Systemes S.A. 24
1,700 Elf Aquitaine S.A. 213
165 Eridania Beghin-Say S.A. 31
60 Essilor International S.A. 23
450 Etablissements Economiques du Casino Guichard-Perrachon S.A. 43
4,925 France Telecom S.A. 343
4,925 France Telecom S.A. Rights* 0
100 Groupe GTM 11
100 Imetal S.A. 9
410 L'OREAL 256
1,300 Lafarage S.A. 122
750 Lagardere S.C.A. 31
170 Legrand S.A. 46
540 LVMH Moet Hennessy Louis Vuitton 105
848 Michelin, Class B 37
100 Natexis 6
100 Nord-Est S.A. 3
1,000 Paribas 89
50 Pathe 11
300 Pechiney S.A. 10
350 Pernod-Ricard 23
725 Pinault Printemps-Redoute S.A. 124
150 Primagaz Cie 14
120 Promodes 79
300 PSA Peugeot Citroen 48
2,300 Rhone-Poulenc, Class A 115
30 Sagem S.A. 21
650 Sanofi S.A. 116
950 Schneider S.A. 59
50 SEB S.A. 5
300 SEITA 17
200 Sidel S.A. 15
125 Simco S.A. 11
100 Skis Rossignol S.A. 1
350 Societe BIC S.A. 22
25 Societe Eurafrance S.A. 16
50 Societe Francaise d'Investissements Immobiliers et de Gestion 3
640 Societe Generale, Class A 101
210 Sodexho Alliance S.A. 41
150 Sommer-Allibert 4
942 Suez Lyonnaise des Eaux 187
1,500 Total S.A., Class B 186
900 Thomson CSF 34
50 Union du Credit-Bail Immobilier 7
50 Union du Immobiliere de France 5
1,600 Usinor Sacilor 18
454 Valeo S.A. 39
970 Vivendi 220
</TABLE>
See accompanying notes to financial statements.
57
<PAGE>
Northern Institutional Funds
Equity Portfolios
- --------------------------------------------------------------------------------
Statements of Investments
November 30, 1997
(All amounts in thousands, except shares)
<TABLE>
<CAPTION>
Shares Description Value
- -------------------------------------------------------------------------
International Equity Index Portfolio--Continued
<C> <S> <C>
France--Continued
300 Vivendi Warrants* $ 1
20 Zodiac S.A. 5
-------
4,254
-------
Germany--9.6%
300 Adidas-Salomon A.G. 33
250 AGIV A.G. 6
1,510 Allianz A.G. 545
50 AMB Aachener & Muenchener Beteilgungs-A.G. (Bearer) 6
250 AMB Aachener & Muenchener Beteilgungs-A.G. (Registered) 39
150 Axa Colonia Konzern A.G. 18
3,900 BASF A.G. 148
4,550 Bayer A.G. 187
2,587 Bayerische HypoVereinsbank A.G. 225
500 Beiersdorf A.G. 33
250 Bilfinger & Berger Bau A.G. 6
50 Brau Und Brunnen A.G. 4
700 Continental A.G. 17
3,568 DaimlerChrysler A.G. 336
550 Degussa A.G. 27
3,300 Deutsche Bank A.G. 204
2,350 Deutsche Lufthansa A.G. (Registered) 52
13,650 Deutsche Telekom A.G. 384
400 Deutz A.G.* 4
200 Douglas Holdings A.G. 13
3,200 Dresdner Bank A.G. 144
400 FAG Kugelfischer Georg Schaefer A.G. 4
320 Heidelbergerzement A.G. 24
450 Hochtief A.G. 17
70 Karstadt A.G. 33
70 Linde A.G. 40
50 Man A.G. 14
2,400 Mannesmann A.G. 260
1,050 Merck KGaA 43
1,360 Metro A.G. 85
1,510 Metro A.G. Rights* 3
500 Muenchener Ruckversicherungs-Gesellschaft A.G. 231
120 Preussag A.G. 44
100 Rheinmetall A.G. 2
2,350 RWE A.G. 125
400 SAP A.G. 182
400 Schering A.G. 50
150 SGL Carbon A.G. 9
3,550 Siemens A.G. 248
210 Thyssen A.G. 38
3,100 VEBA A.G. 172
150 Viag A.G. 93
1,950 Volkswagen A.G. 159
-------
4,307
-------
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- ---------------------------------------------------------
<C> <S> <C>
Hong Kong--2.3%
10,000 Applied International Holdings* $ 0
9,200 Bank of East Asia Ltd.* 17
23,000 Cathay Pacific Airways 22
15,000 Cheung Kong Holdings Ltd. 108
16,000 China Light & Power Co. Ltd. 84
12,000 Chinese Estates Holdings 2
2,400 Chinese Estates Holdings Warrants* 0
2,000 Dickson Concepts International Ltd 2
5,000 Elec & Eltek International Holdings Ltd. 1
6,000 Giordano International Ltd. 1
9,000 Hang Lung Development Co. 11
12,600 Hang Seng Bank Ltd. 111
7,500 Hong Kong & Shanghai Hotels Ltd. 6
1,200 Hong Kong Aircraft Engineering Co. Ltd. 2
28,720 Hong Kong China Gas Co. Ltd. 38
1,260 Hong Kong China Gas Co. Ltd. Warrants* 0
78,400 Hong Kong Telecommunications Ltd. 150
28,000 Hopewell Holdings Ltd. 4
25,000 Hutchinson Whampoa Ltd. 179
7,083 Hysan Development Co. Ltd. 10
700 Hysan Development Co. Ltd. Warrants* 0
6,800 Johnson Electric Holdings Ltd. 15
3,000 Kumagai Gum Ltd. 1
600 Kumagai Gum Ltd. Warrants* 0
4,000 Miramar Hotel & Investment Ltd. 4
12,879 New World Development Co. Ltd. 31
12,000 Oriental Press Group 1
2,000 Playmates Toys Holdings 0
26,400 Regal Hotels International 4
13,000 Shangri-La Asia Ltd. 12
12,000 Shun Tak Holdings Ltd. 2
20,741 Sino Land Co. 11
12,000 South China Morning Post Holdings Ltd. 7
2,000 Stelux Holdings 0
16,000 Sun Hung Kai Properties Ltd. 115
10,000 Swire Pacific Ltd. 45
5,000 Tai Cheung Holdings Ltd. 1
12,000 Tan Chong International Ltd.* 1
3,000 Television Broadcasts Ltd. 8
2,000 Varitronix International Ltd. 4
15,000 Wharf Holdings Ltd. 24
750 Wharf Holdings Ltd. Warrants* 0
1,500 Wing Lung Bank 5
------
1,039
------
Ireland--0.5%
5,837 Allied Irish Banks PLC 90
272 Clondalkin Group PLC Units 2
293 Crean (James) PLC Units 0
2,626 CRH PLC 40
540 DCC PLC 5
1,912 Fyffes PLC 4
1,245 Greencore Group PLC 6
1,696 Independent Newspapers PLC 6
168 Irish Continental Group PLC 2
</TABLE>
See accompanying notes to financial statements.
58
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Description Value
- ----------------------------------------------------------
<C> <S> <C>
2,175 Irish Life PLC $ 19
611 Irish Permanent PLC 8
564 Jurys Hotel Group PLC 4
1,118 Kerry Group PLC, Class A 16
1,300 Ryanair Holdings PLC* 7
7,532 Smurfit (Jefferson) Group PLC 15
1,489 Tullow Oil PLC* 1
4,995 Waterford Wedgewood PLC Units 5
-------
230
-------
Italy--5.0%
7,000 Assicurazioni Generali* 262
12,000 Banca Commerciale Italiana 82
11,000 Banca Intesa S.p.A. 62
5,000 Banca Intesa-RNC S.p.A. 15
2,000 Banco Popolare di Milano 18
10,000 Benetton Group S.p.A. 18
2,000 Bulgari S.p.A. 11
1,000 Burgo (Cartiere) S.p.A. 6
2,000 Cementir S.p.A. 2
4,000 Edison S.p.A. 40
52,000 ENI S.p.A. 324
1,000 Falck Acciaierie & Ferriere Lombarde 8
24,400 Fiat S.p.A. 75
5,300 Fiat-RNC S.p.A. 10
4,000 Impregilo S.p.A. 3
26,000 Istituto Nationale Assicurazioni 69
1,000 Italcementi S.p.A. 10
1,000 Italcementi-RNC S.p.A. 5
5,000 Italgas S.p.A. 25
1,000 La Rinascente S.p.A. 10
4,200 Magneti Marelli 7
8,000 Mediaset S.p.A. 57
4,000 Mediobanca S.p.A. 49
1,000 Mondadori (Arnoldo) Editore S.p.A. 13
33,000 Montedison S.p.A. 40
6,000 Montedison-RNC S.p.A. 5
18,240 Olivetti Group* 48
10,000 Parmalat Finanziaria S.p.A. 19
13,000 Pirelli S.p.A. 41
1,000 Pirelli-RNC S.p.A. 2
1,000 Reno de Medici S.p.A. 3
3,000 Riunione Adriatic di Sicurta S.p.A. 40
1,000 Riunione Adriatica di Sicurta-RNC S.p.A. 10
9,180 San Paolo-IMI S.p.A. 151
1,000 Sirti S.p.A. 6
5,000 Snia BPD S.p.A. 7
1,000 Snia BPD-RNC S.p.A. 1
1,000 Societa Assicuratrice Industriale S.p.A. 11
43,000 Telecom Italia Mobile S.p.A. 283
10,000 Telecom Italia Mobile-RNC S.p.A. 42
24,111 Telecom Italia S.p.A. 196
5,488 Telecom Italia-RNC S.p.A. 34
19,000 Unicredito Italiano S.p.A. 108
26,000 Unione Immobiliare S.p.A. 13
-------
2,241
-------
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- -----------------------------------------------------
<C> <S> <C>
Japan--20.6%
2,000 77 Bank $ 19
900 Acom Co. Ltd. 55
600 Advantest Corp. 40
4,000 Ajinomoto Co. 36
1,000 Alps Electric Co. Ltd. 16
2,000 Amada Co. Ltd. 10
1,000 Amano Corp. 9
3,000 Aoki Corp.* 2
100 Aoyama Trading 3
400 Arabian Oil Co. 5
14,000 Asahi Bank Ltd. 54
3,000 Asahi Breweries Ltd. 43
9,000 Asahi Chemical Industry Co. Ltd. 37
7,000 Asahi Glass Co. Ltd. 41
4,000 Ashikaga Bank Ltd. 7
300 Autobacs Seven Co. Ltd. 9
27,000 Bank of Tokyo-Mitsubishi Ltd. 294
8,000 Bank of Yokohama Ltd. 17
5,000 Bridgestone Corp. 117
2,000 Brother Industries Ltd. 6
5,000 Canon, Inc. 111
2,000 Casio Computer Co. Ltd. 15
5,000 Chiba Bank Ltd. 19
1,000 Chiyoda Corp. 2
1,000 Chugai Pharmaceutical Co. Ltd. 9
2,000 Citizen Watch Co. Ltd. 13
4,000 Cosmo Oil Co. Ltd. 6
1,000 Credit Saison Co. Ltd. 23
500 CSK Corp. 12
5,000 Dai Nippon Ink & Chemicals, Inc. 13
5,000 Dai Nippon Printing Co. Ltd. 73
1,000 Dai Nippon Screen MFG Co. Ltd. 3
3,000 Daicel Chemical Industry Ltd. 7
3,000 Daido Steel Co. Ltd. 5
5,000 Daiei, Inc. 13
1,000 Daifuku Co. Ltd. 5
2,000 Daiichi Pharmaceutical 31
2,000 Daikin Industries Ltd. 18
1,000 Daikyo, Inc. 1
2,000 Daimaru, Inc. 5
1,100 Daito Trust Construction Co. 9
3,000 Daiwa House Industry Co. Ltd. 32
1,000 Daiwa Kosho Lease Co. Ltd. 4
9,000 Daiwa Securities Co. Ltd. 32
3,000 Denki Kagaku Kogyo Kabushiki Kaisha 5
5,000 Denso Corp. 97
24 East Japan Railway Co. 140
2,000 Ebara Corp. 17
2,000 Eisai Co. Ltd. 31
1,000 Ezaki Glico Co. Ltd. 5
1,400 Fanuc 44
18,000 Fuji Bank Ltd. 71
3,000 Fuji Photo Film Co. 112
2,000 Fujikura Ltd. 11
</TABLE>
See accompanying notes to financial statements.
59
<PAGE>
Northern Institutional Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
November 30, 1998
(All amounts in thousands, except shares)
<TABLE>
<CAPTION>
Shares Description Value
- ---------------------------------------------------------------
INTERNATIONAL EQUITY INDEX PORTFOLIO--CONTINUED
<C> <S> <C>
JAPAN--Continued
3,000 Fujita Corp. $ 2
1,000 Fujita Kanko, Inc. 10
11,000 Fujitsu Ltd. 127
4,000 Furukawa Electric Co. Ltd. 14
1,000 Gakken Co. Ltd. 1
3,000 Gunma Bank 22
2,000 Gunze Ltd. 4
6,000 Hankyu Corp. 24
1,000 Hankyu Department Stores, Inc. 7
3,000 Haseko 2
2,000 Hazama Corp. 1
2,000 Higo Bank 8
200 Hirose Electric 13
20,000 Hitachi Ltd. 121
7,000 Hitachi Zosen Corp. 11
5,000 Hokuriku Bank 9
6,000 Honda Motor Co. Ltd. 216
1,000 House Foods Corp. 15
1,000 Hoya Corp. 42
2,000 Inax 11
16,000 Industrial Bank of Japan 87
1,000 Isetan 10
2,000 Ishihara Sangyo Kaisha 3
3,000 Ito-Yokado Co. 184
10,000 Itochu Corp. 19
2,000 Itoham Foods 10
2,000 Iwataini International Corp. 4
1,000 JACCS Co., Ltd. 4
11,000 Japan Airlines 28
8,000 Japan Energy Corp. 8
1,000 Japan Metals & Chemicals* 2
3,000 Japan Steel Works 4
1,000 JGC Corp. 3
6,000 Joyo Bank 22
2,000 JUSCO Co. 38
6,000 Kajima Corp. 16
1,000 Kaken Pharmaceutical Co. 3
2,000 Kamigumi Co. Ltd. 9
1,000 Kandenko Co. Ltd. 7
4,000 Kanebo Ltd.* 4
2,000 Kaneka Corp. 14
6,000 Kansai Electric Power Co., Inc. 121
2,000 Kansai Paint 5
4,000 Kao Corp. 76
8,000 Kawasaki Heavy Industries Ltd. 20
4,000 Kawasaki Kisen Kaisha Ltd. 6
21,000 Kawasaki Steel Corp. 32
3,000 Keihin Electric Expesss Railway Co. Ltd. 9
1,000 Kikkoman Corp. 6
2,000 Kinden Corp. 27
10,000 Kinki Nippon Railway 50
6,000 Kirin Brewery Co. Ltd. 62
1,000 Kokuyo Co. Ltd. 14
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- -------------------------------------------------------------
<C> <S> <C>
6,000 Komatsu Ltd. $ 31
300 Konami Co. Ltd. 8
2,000 Konica Corp. 9
1,000 Koyo Seiko Co. 6
9,000 Kubota Corp. 21
5,000 Kumagai Gumi Co. Ltd. 4
2,000 Kurabo Industries 2
2,000 Kurary Co. Ltd. 21
1,000 Kureha Chemical Industry 3
1,000 Kurita Water Industries Ltd. 14
1,100 Kyocera Corp. 52
3,000 Kyowa Hakko Kogyo 15
2,000 Lion Corp. 8
1,000 Maeda Road Construction Co. Ltd. 6
1,000 Makino Milling Machine Co. Ltd. 6
1,000 Makita Corp. 11
10,000 Marubeni Corp. 18
2,000 Maruha Corp. 2
2,000 Marui Co. Ltd. 36
13,000 Matsushita Electric Industrial Co. Ltd. 209
2,000 Meiji Milk Products Co. Ltd. 6
3,000 Meiji Seika 11
2,000 Minebea Co. Ltd. 22
1,000 Misawa Homes Co. Ltd. 3
14,000 Mitsubishi Chemical Corp. 26
10,000 Mitsuibishi Corp. 64
14,000 Mitsubishi Electric Corp. 36
8,000 Mitsubishi Estate Co. Ltd. 77
3,000 Mitsubishi Gas Chemical Co. 8
21,000 Mitsubishi Heavy Industries Ltd. 79
1,000 Mitsubishi Logistics Corp. 11
8,000 Mitsubishi Materials Corp. 14
3,000 Mitsubishi Oil Co. Ltd. 5
2,000 Mitsubishi Paper Mills 4
4,000 Mitsubishi Rayon Co. 11
8,000 Mitsubishi Trust & Banking Corp. 58
10,000 Mitsui & Co. 57
6,000 Mitsui Engineering & Shipbuilding Co. Ltd.* 6
5,000 Mitsui Fudosan Co. Ltd. 38
5,000 Mitsui Marine & Fire Insurance Co. Ltd. 25
3,000 Mitsui Mining & Smelting 14
8,000 Mitsui O.S.K. Lines Ltd. 13
1,000 Mitsui Soko Co. Ltd. 4
8,000 Mitsui Trust & Banking Co. Ltd. 11
3,000 Mitsukoshi Ltd. 8
1,000 Mori Seiki Co. Ltd. 11
1,000 Murata Manufacturing Co. Ltd. 39
2,000 Mycal Corp. 13
1,000 Nagase & Co. Ltd. 3
5,000 Nagoya Railroad Co. Ltd. 17
400 Namco Ltd. 8
3,000 Nankai Electric Railway 13
10,000 NEC Corp. 85
2,000 NGK Insulators Ltd. 22
1,000 NGK Spark Plug Co. 9
</TABLE>
See accompanying notes to financial statements.
60
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Description Value
- ----------------------------------------------------------
<C> <S> <C>
3,000 Nichido Fire & Marine Insurance $ 15
2,000 Nichirei Corp. 5
2,000 Niigata Engineering Co. Ltd.* 2
2,000 Nikon Corp. 19
1,000 Nippon Beet Sugar Manufacturing Co. Ltd. 2
1,000 Nippon Comsys Corp. 13
7,000 Nippon Express Co. Ltd. 36
4,000 Nippon Fire & Marine Insurance 14
4,000 Nippon Light Metal Co. 4
1,000 Nippon Meat Packers, Inc. 14
8,000 Nippon Oil Co. Ltd. 26
6,000 Nippon Paper Industries Co. 26
1,000 Nippon Sharyo Ltd. 3
3,000 Nippon Sheet Glass Co. Ltd. 7
2,000 Nippon Shinpan Co. 4
1,000 Nippon Shokubai K.K. Co. 6
42,000 Nippon Steel Corp. 77
2,000 Nippon Suisan Kaisha Ltd.* 2
73 Nippon Telegraph & Telephone Corp. 546
8,000 Nippon Yusen Kabushiki Kaisha 24
2,000 Nishimatsu Construction 11
15,000 Nissan Motor Co. Ltd. 46
2,000 Nisshinbo Industries, Inc. 7
1,000 Nissin Food Products 20
1,000 Nitto Denko Corp. 15
25,000 NKK Corp. 18
1,000 NOF Corp. 2
12,000 Nomura Securities Co. Ltd. 117
1,000 Noritake Co. Ltd. 5
4,000 NSK Ltd. 16
3,000 NTN Corp. 9
5,000 Obayashi Corp. 23
5,000 Odakyu Electric Railway 16
6,000 Oji Paper Co. Ltd. 27
1,000 Okamoto Industries Inc. 2
1,000 Okuma Corp. 5
2,000 Okumura Corp. 7
2,000 Olympus Optical Co. Ltd. 22
2,000 Omron Corp. 24
1,000 Onward Kasiyama Co. Ltd. 12
2,000 Orient Corp. 5
400 Orix Corp. 29
15,000 Osaka Gas Co. Ltd. 44
300 Oyo Corp. 4
2,000 Penta-Ocean Construction 4
1,000 Pioneer Electronic Corp. 16
1,000 Q.P. Corp. 7
2,000 Renown, Inc.* 1
1,000 Rohm Co. Ltd. 85
24,000 Sakura Bank Ltd. 61
1,000 Sanden Corp. 6
2,000 Sankyo Aluminium Industry Co. 2
3,000 Sankyo Co. Ltd. 68
2,000 Sanwa Shutter Corp. 9
12,000 Sanyo Electric Co. 34
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- ---------------------------------------------------
<C> <S> <C>
2,000 Sapporo Breweries Ltd. $ 9
2,000 Sato Kogyo 2
1,000 Secom Co. Ltd. 74
700 Sega Enterprises 17
1,000 Seino Transportation Co. Ltd. 6
1,000 Seiyu Ltd. 3
3,000 Sekisui Chemical Co. Ltd. 18
4,000 Sekisui House Ltd. 39
7,000 Sharp Corp. 62
300 Shimachu Co., Ltd. 6
1,000 Shimano Inc. 26
5,000 Shimizu Corp. 16
2,000 Shin-Etsu Chemical Co. Ltd. 45
2,000 Shionogi & Co. 14
3,000 Shiseido Co. Ltd. 34
5,000 Shizuoka Bank 54
7,000 Showa Denko K.K. 6
1,000 Skylark Co. Ltd. 12
400 SMC Corp. 30
2,000 Snow Brand Milk Products 8
2,500 Sony Corp. 183
19,000 Sumitomo Bank Ltd. 212
10,000 Sumitomo Chemicals Co. 35
7,000 Sumitomo Corp. 38
4,000 Sumitomo Electric Industries 44
1,000 Sumitomo Forestry Co. Ltd. 7
4,000 Sumitomo Heavy Industries Ltd. 8
4,000 Sumitomo Marine & Fire Insurance 24
21,000 Sumitomo Metal Industries 25
4,000 Sumitomo Metal Mining Co. 14
3,000 Sumitomo Osaka Cement Co. Ltd. 6
6,400 Taiheiyo Cement Corp. 15
6,000 Taisei Corp. 11
2,000 Taisho Pharmaceutical Co. 50
1,000 Taiyo Yuden Co. Ltd. 11
1,000 Takara Shuzo 5
1,000 Takara Standard Co. Ltd. 7
2,000 Takashimaya Co. Ltd. 17
5,000 Takeda Chemical Industries 169
6,000 Teijin Ltd. 22
2,000 Teikoku Oil Co. Ltd. 6
1,000 Toa Corp. 2
6,000 Tobu Railway Co. 17
1,000 Toei Co. Ltd. 3
100 Toho Co. 12
3,100 Tohoku Electric Power 50
12,000 Tokai Bank 61
9,000 Tokio Marine & Fire Insurance Co. 102
1,000 Tokyo Broadcasting System Inc. 10
1,000 Tokyo Dome Corp. 5
8,300 Tokyo Electric Power Co. 190
1,000 Tokyo Electron Ltd. 37
18,000 Tokyo Gas Co. Ltd. 42
1,200 Tokyo Steel Manufacturing 5
1,000 Tokyo Style Co. Ltd. 11
</TABLE>
See accompanying notes to financial statements.
61
<PAGE>
Northern Institutional Funds
Equity Portfolios
- --------------------------------------------------------------------------------
Statements of Investments
November 30, 1998
(All amounts in thousands, except shares)
<TABLE>
<CAPTION>
Shares Description Value
- ---------------------------------------------------------------
International Equity Index Portfolio--Continued
<C> <S> <C>
Japan--Continued
2,000 Tokyo Tatemono Co. Ltd. $ 4
2,000 Tokyotokeiba 3
7,000 Tokyu Corp. 18
4,000 Toppan Printing Co. Ltd. 48
9,000 Toray Industries, Inc. 43
4,000 Tosoh Corp. 6
1,000 Tostem Corp. 17
2,000 Toto Ltd. 15
1,000 Toyo Engineering Corp. 1
1,000 Toyo Seikan Kaisha 17
5,000 Toyobo Ltd. 6
2,000 Toyoda Automatic Loom Works 34
22,000 Toyota Motor Corp. 558
200 Trans Cosmos Inc. 5
1,000 Tsubakimoto Chain 2
6,000 Ube Industries Ltd. 8
500 Uni-Charm Corp. 21
3,000 Unitika Ltd.* 2
1,000 Uny Co. Ltd. 17
1,000 Wacoal Corp. 11
1,000 Yamaguchi Bank 9
1,000 Yamaha Corp. 11
5,000 Yamaichi Securities Co. Ltd. 0
2,000 Yamanouchi Pharmaceutical Co. Ltd. 59
3,000 Yamato Transport Co. Ltd. 37
1,000 Yamazaki Baking Co. Ltd. 12
8,000 Yasuda Trust & Banking 8
2,000 Yokogawa Electric 10
-------
9,237
-------
Malaysia--0.4%
2,200 AMMB Holdings Berhad 2
8,000 Amsteel Corp. Berhad 1
2,000 Antah Holdings Berhad 0
2,000 Aokam Perdana Berhad* 0
6,000 Berjaya Group Berhad 1
4,000 Berjaya Land Berhad 1
5,000 Commerce Asset Holdings Berhad 2
2,000 Edaran Otomobil Nasional Berhad 2
4,000 Ekran Berhad* 1
6,000 Golden Hope Plantations Berhad 3
1,000 Golden Plus Holdings Berhad 0
2,000 Guinness Anchor Berhad 1
4,000 Highlands & Lowlands Berhad 2
2,000 Hong Leong Industries Berhad 1
4,000 Hong Leong Properties Berhad 1
2,000 Hume Industries Berhad 1
4,000 Idris Hydraulic Berhad* 1
3,000 IGB Corp. Berhad 1
5,000 IOI Corp. Berhad 2
2,000 Jaya Tiasa Holdings Berhad 2
2,000 Johan Holdings Berhad 0
3,000 Kedah Cement Holdings Berhad 1
1,000 Kelanamas Industries Berhad* 0
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- --------------------------------------------------------
<C> <S> <C>
3,000 Kemayan Corp. Berhad $ 0
1,000 Kian Joo Can Factory Berhad 1
5,000 Kuala Lumpur Kepong Berhad 5
3,000 Land and General Berhad 1
3,000 Landmarks Berhad 0
3,000 Leader Universal Holdings Berhad 1
9,000 Magnum Corp. Berhad 3
13,200 Malayan Banking Berhad 15
3,000 Malayan Cement Berhad 1
12,000 Malayan United Industries Berhad 2
1,500 Malayawata Steel Berhad 0
24,000 Malaysia International Shipping Berhad 20
5,000 Malaysia Mining Corp. Berhad 2
5,000 Malaysian Airline System Berhad 2
2,000 Malaysian Mosaics Berhad 1
1,000 Malaysian Oxygen Berhad 1
2,000 Malaysian Pacific Industries 2
5,666 Malaysian Resources Corp. Berhad 2
5,000 MBF Capital Berhad 1
5,000 Metroplex Berhad 1
6,000 Mulpha International Berhad 1
5,000 Multi-Purpose Holdings 1
3,000 Mycom Berhad 0
2,000 Nestle Berhad 5
2,000 New Straits Times Press Berhad 1
2,600 Oriental Holdings Berhad 2
1,000 Palmco Holdings Berhad 0
5,000 Pan-Malaysia Cement Works Berhad 1
3,000 Perlis Plantations Berhad 2
4,000 Perusahaan Otomolbil Nasional Berhad 4
2,000 Petaling Garden Berhad 1
2,000 Pilecon Engineering Berhad 0
4,000 Promet Berhad* 0
3,600 Public Bank Berhad 1
25,600 Public Bank Berhad (Foreign Market) 8
2,000 R.J. Reynolds Berhad 1
3,000 Rashid Hussain Berhad 2
7,000 Resorts World Berhad 5
12,000 RHB Capital Berhad 4
1,800 Rothmans of Pall Mall Berhad 7
2,000 Selangor Properties Berhad 1
2,000 Shell Refining Co. Berhad 2
280 Silverstone Berhad* 0
14,000 Sime Darby Berhad 9
3,000 Sungei Way Holdings Berhad 1
5,000 Ta Enterprise Berhad 1
4,000 Tan Chong Motor Holdings Berhad 1
5,000 Technology Resources Industries Berhad 2
17,500 Telekom Malaysia Berhad 24
18,000 Tenaga Nasional Berhad 17
5,000 Time Engineering Berhad 1
2,000 UMW Holdings Berhad 1
5,000 United Engineers (Malaysia) Ltd. 3
8,000 YTL Corp. Berhad 6
-------
202
-------
</TABLE>
See accompanying notes to financial statements.
62
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Description Value
- ---------------------------------------------------
<C> <S> <C>
NETHERLANDS--5.1%
9,888 ABN AMRO Holdings N.V. $ 204
1,856 Akzo Nobel 76
233 ASR Verzekeringsgroep N.V. 19
540 Buhrmann N.V. 9
4,334 Elsevier N.V. 57
558 Getronics N.V. 25
2,037 Heineken N.V. 104
215 Hollandsche Beton Groep N.V. 3
78 IHC Caland N.V. 3
6,121 ING Groep N.V. 351
479 KLM N.V. 13
1,681 Koninklijke Ahold N.V. 58
241 Koninklijke Hoogovens N.V. 8
3,422 Koninklijke KPN N.V. 148
148 Koninklijke Nedlloyd N.V. 2
209 Koninklijke Pakhoed N.V. 5
530 Oce-Van Der Grinten N.V. 19
2,371 Philips Electronics N.V. 150
12,440 Royal Dutch Petroleum Co. 598
199 Stork N.V. 5
1,422 TNT Post Group N.V. 36
4,162 Unilever N.V. 326
449 Wolters Kluwer N.V. 86
-------
2,305
-------
NEW ZEALAND--0.2%
17,500 Brierley Investments Ltd. 4
11,200 Carter Holt Harvey Ltd. 11
800 Fisher & Paykel Industries Ltd. 2
2,218 Fletcher Challenge Building 3
2,292 Fletcher Challenge Energy 5
5,317 Fletcher Challenge Forests 2
4,200 Fletcher Challenge Paper 3
3,600 Lion Nathan Ltd. 9
11,400 Telecom Corp. of New Zealand Ltd. 49
-------
88
-------
NORWAY--0.4%
400 Aker RGI ASA 5
140 Aker RGI ASA, Class B 1
300 ASK ASA* 2
300 Bergesen d.y. ASA, Class A 4
100 Bergesen d.y. ASA, Class B 1
3,600 Christiania Bank Og Kreditkasse 13
4,200 Den norske Bank ASA 16
200 Dyno Industrier ASA 3
300 Elkem ASA 3
500 Hafslund ASA, Class A 3
200 Hafslund ASA, Class B 1
100 Helicopter Services Group ASA 1
200 Kvaerner ASA 3
100 Kvaerner ASA, Class B 1
200 Leif Hoegh & Co. ASA 3
600 Merkantildata ASA 7
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- ------------------------------------------------------------------------------
<C> <S> <C>
1,600 NCL Holdings ASA* $ 3
1,500 Norsk Hydro ASA 56
200 Norske Skogindustrier ASA, Class A 6
100 Norske Skogindustrier ASA, Class B 2
1,000 Orkla ASA, Class A 17
300 Orkla ASA, Class B 4
600 Petroleum Geo-Services ASA* 9
300 SAS Norge ASA, Class B 3
400 Schibsted ASA 5
200 Smedvig, Class A 1
100 Smedvig, Class B 1
1,800 Storebrand ASA* 13
300 Tomra System ASA 9
100 Unitor ASA 1
-------
197
-------
PORTUGAL--0.6%
1,200 Banco Comercial Portugues S.A. (Registered) 37
600 Banco Espirito Santo e Comercial de Lisboa S.A. (Registered) 19
400 Banco Totta & Acores S.A. (Registered) 10
500 BPI-SGPS S.A. (Registered) 16
500 Brisa-Auto Estradas de Portugal S.A. 27
500 Cimpor-Cimentos de Portugal SGPS S.A. 16
100 Colep-Companhia Portuguesa de Embalagens* 1
100 Companhia de Seguros Tranquilidade (Registered) 3
100 Corticeira Amorim S.A. 1
2,300 EDP-Electricidade de Portugal S.A. 51
100 EFACEC-Empresa Fabril de MaquinasElectricas S.A. 1
100 Engil-SGPS 1
100 INAPA Investimentos Participacoes e Gestao S.A. 1
100 INAPA Investimentos Participacoes e Gestao S.A. Rights* 0
400 Jeronimo Martins SGPS S.A. 20
700 Portucel Industral-Empresa Produtora deCelulose S.A. 5
1,200 Portugal Telecom S.A. (Registered) 52
100 Sociedade de Construcoes Soares da Costa S.A. 0
100 Sociedade de Construcoes Soares da Costa S.A. Bonus Rights* 0
100 Somague-SGPS S.A. 1
200 Sonae Investmentos-SGPS S.A. 10
100 UNICER-Uniao Cervejeira S.A. 2
-------
274
-------
SINGAPORE--0.9%
1,000 Chuan Hup Holdings Ltd. 0
3,000 City Developments Ltd. 14
2,000 Comfort Group Ltd. 1
1,000 Cycle & Carriage Ltd. 3
3,000 DBS Land Ltd. 4
10,900 Development Bank of Singapore Ltd.* 83
1,000 First Capital Corp. Ltd. 1
</TABLE>
See accompanying notes to financial statements.
63
<PAGE>
Northern Institutional Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
November 30, 1998
(All amounts in thousands, except shares)
<TABLE>
<CAPTION>
Shares Description Value
- ----------------------------------------------------------------------------
INTERNATIONAL EQUITY INDEX PORTFOLIO--CONTINUED
<C> <S> <C>
SINGAPORE--Continued
1,000 Fraser & Neave Ltd. $ 3
2,000 Goldtron Ltd. 0
2,000 Hai Sun Hup Group Ltd. 1
1,000 Haw Par Brothers International Ltd. 1
1,000 Hotel Properties Ltd. 1
1,000 Inchcape Marketing Services Ltd.* 1
1,000 Inchape Motors Ltd. 1
6,000 IPC Corp. 0
2,250 Keppel Corp. Ltd. 6
2,400 Lum Chang Holdings Ltd. 1
1,000 NatSteel Ltd. 1
3,000 Neptune Orient Lines Ltd. 1
16,600 Overseas Chinese Banking Corp. Ltd. (Foreign) 102
1,000 Overseas Union Enterprise Ltd. 2
1,000 Parkways Holdings Ltd. 2
1,000 Sembawang Marine and Logistics 1
5,494 Sembcorp Industries Ltd.* 7
10,000 Singapore Airlines Ltd. 70
1,893 Singapore Press Holdings Ltd. 20
17,000 Singapore Telecommunications Ltd. 28
1,000 Straits Trading Co. Ltd. 1
4,000 United Industrial Corp. Ltd. 2
8,000 United Overseas Bank Ltd. (Foreign) 46
2,000 United Overseas Land Ltd. 1
-------
405
-------
SPAIN--3.3%
375 Acerinox S.A. 9
3,050 Argentaria, Caja Postal y Banco Hipotecario de Espana S.A. 71
1,550 Autopistas Concesionaria ESP 24
12,656 Banco Bilbao Vizcaya S.A. 200
6,840 Banco Central Hispanoamericano 79
8,384 Banco Santander S.A. 172
75 Corporacion Financiera Alba 10
393 Corporacion Mapfre 11
372 Dragados & Construcciones S.A. 12
400 Ebro Agricolas Compania de Alimentacion S.A.* 9
200 El Aguila S.A.* 2
150 Empresa Nacional de Celulosas S.A. 2
6,100 Empresa Nacional de Electricidad S.A. 160
900 Ercros S.A.* 1
375 Fomenta de Construcciones S.A. 22
925 Gas Natural SDG S.A., Class E 78
5,601 Iberdrola S.A. 93
250 Inmobiliaria Urbis S.A.* 4
300 Metrovacesa S.A. 8
125 Portland Valderrivas S.A. 5
400 Prosegur CIA de Seguridad S.A. (Registered) 5
1,875 Repsol S.A. 107
453 Sarrio S.A. 2
275 Sociedade General de Aguas de Barcelona S.A. 16
1,175 Tabacalera S.A., Class A 29
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- ---------------------------------------------------------------------------
<C> <S> <C>
6,279 Telefonica de Espana $ 296
1,884 Union Electrica Fenosa S.A. 28
350 Uralita S.A. 4
825 Vallehermoso S.A. 10
150 Viscofan Industria Navarra de Envolturas Celulosicas S.A. 5
350 Zardoya Otis S.A. 11
-------
1,485
-------
SWEDEN--3.0%
4,400 ABB AB, Class A 48
1,800 ABB AB, Class B 19
900 AGA AB, Class A 11
700 AGA AB, Class B 8
250 Asticus AB* 2
8,766 Astra AB, Class A 161
2,000 Astra AB, Class B 36
800 Atlas Copco AB, Class A 18
400 Atlas Copco AB, Class B 9
400 Diligentia AB 3
700 Drott AB, Class B* 5
2,440 Electrolux AB, Class B 37
100 Esselte AB, Class A 1
100 Esselte AB, Class B 2
2,300 ForeningsSparbanken AB 65
192 Granges AB 3
1,400 Hennes & Mauritz AB, Class B 104
700 Netcom Systems AB, Class B* 27
500 Om Gruppen AB 7
1,200 Sandvik AB, Class A 22
500 Sandvik AB, Class B 9
2,000 Securitas AB, Class B 30
3,405 Skandia Forsakrings AB 48
3,900 Skandinaviska Enskilda Banken, Class A 44
700 Skanska AB, Class B 20
300 SKF AB, Class A 4
411 SKF AB, Class B 5
1,700 Stora Kopparbergs Bergslags Aktiebolag,
Class A 21
400 Stora Kopparbergs Bergslags Aktiebolag,
Class B 5
1,300 Svenska Cellulosa AB, Class B 29
1,400 Svenska Handelsbanken, Class A 57
100 Svenska Handelsbanken, Class B 4
500 Svenskt Stal AB, Class A 4
200 Svenskt Stal AB, Class B 2
2,800 Swedish Match AB 9
12,800 Telefonaktiebolaget LM Ericsson, Class B 357
800 Trelleborg AB, Class B 7
900 Volvo AB, Class A 20
2,000 Volvo AB, Class B 47
500 Wm-Data AB, Class B 21
-------
1,331
-------
</TABLE>
See accompanying notes to financial statements.
64
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Description Value
- -----------------------------------------------------------------------------
<C> <S> <C>
SWITZERLAND--8.0%
55 ABB A.G. (Bearer)* $ 69
25 ABB A.G. (Registered) 6
110 Adecco S.A. 48
40 Alusuisse-Lonza Holdings A.G. (Registered) 50
1,745 Credit Suisse Group (Registered) 301
15 Fischer (Georg) A.G. (Registered) 5
30 Holderbank Financiere Glarus A.G., (Bearer) 35
50 Holderbank Financiere Glarus A.G. (Registered) 12
2 Kuoni Reisen A.G., Category B (Registered) 8
265 Nestle S.A. (Registered) 552
50 Novartis A.G. (Bearer) 93
360 Novartis A.G. (Registered) 678
10 Roche Holdings A.G. (Bearer) 180
47 Roche Holdings A.G. (Genusss) 554
100 Sairgroup (Registered) 22
10 Schindler Holding A.G. (Registered) 17
100 Schweizerische Reuckversicherungs-Gesellschaft (Registered) 254
15 SGS Societe Generale de Surveillance Holdings S.A (Bearer) 12
10 SGS Societe Generale de Surveillance Holdings S.A
(Registered) 2
20 Sulzer (Registered) 11
20 Swatch Group A.G. (Bearer) 11
100 Swatch Group A.G. (Registered) 13
1,394 Union Bank of Switzerland (Registered) 421
25 Valora Holding A.G. 7
300 Zurich Allied A.G. 215
-------
3,576
-------
UNITED KINGDOM--21.1%
9,000 Abbey National PLC 182
9,205 Allied Zurich PLC* 132
1,031 AMEC PLC 3
439 Amstrad PLC 0
1,929 Anglian Water PLC 28
2,067 Anglian Water PLC, Class B* 2
5,000 Arjo Wiggins Appleton PLC 9
6,000 Associated British Foods PLC 61
6,000 BAA PLC 66
9,361 Barclays PLC 213
1,000 Barratt Developments PLC 4
4,855 Bass PLC 67
3,062 BBA Group PLC 17
1,000 Berkeley Group PLC 8
24,294 BG PLC 167
3,113 BICC Group PLC 3
5,219 Blue Circle Industries PLC 26
2,987 BOC Group PLC 43
5,587 Boots Co. PLC 90
1,015 Bowthorpe PLC 7
3,000 BPB PLC 10
11,177 British Aerospace PLC 96
6,120 British Airways PLC 41
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- ----------------------------------------------------
<C> <S> <C>
9,205 British American Tobacco PLC $ 84
3,035 British Land Co. PLC 26
33,795 British Petroleum Co. PLC 527
10,000 British Sky Broadcasting Group PLC 83
12,000 British Steel PLC 19
39,250 British Telecommunications PLC 538
20,610 BTR PLC 42
3,000 Bunzl PLC 13
1,000 Burmah Castrol PLC 15
15,000 Cable & Wireless PLC 191
6,224 Cadbury Schweppes PLC 94
2,900 Caradon PLC 5
4,044 Carlton Communications PLC 33
27,000 Centrica PLC* 56
5,000 Coats Viyella PLC 2
1,000 Cobham PLC 14
5,872 Coca-Cola Beverages PLC* 12
8,114 CGU PLC 129
4,000 Compass Group PLC 42
1,000 Courtaulds Textiles PLC 3
1,000 De La Rue PLC 3
1,000 Delta PLC 2
21,594 Diageo PLC 242
3,000 Electrocomponents PLC 21
3,057 Elementis PLC 4
5,137 EMI Group PLC 31
2,020 English China Clays PLC 6
4,000 FKI PLC 10
16,653 General Electric Co. PLC 136
4,596 GKN PLC 51
22,000 Glaxo Wellcome PLC 696
5,078 Granada Group PLC 79
2,000 Great Portland Estates PLC 6
6,000 Great Universal Stores PLC 62
5,857 Guardian Royal Exchange PLC 32
15,300 Halifax PLC 218
2,040 Hammerson PLC 13
4,000 Hanson PLC 30
2,000 Hepworth PLC 5
11,235 HSBC Holdings PLC 285
5,117 HSBC Holdings PLC (75P) 139
1,000 Hyder PLC 13
2,000 IMI PLC 9
4,000 Imperial Chemical Industries PLC 37
1,000 Jarvis PLC 11
1,000 Johnson Matthey PLC 7
8,176 Kingfisher PLC 78
7,117 Ladbroke Group PLC 28
1,000 Laird Group PLC 2
3,363 Land Securities Group PLC 45
6,000 LASMO PLC 14
8,000 Legal & General Group PLC 98
1,000 Lex Service PLC 7
35,076 Lloyds TSB Group PLC 488
1,286 Lonrho PLC 6
</TABLE>
See accompanying notes to financial statements.
65
<PAGE>
Northern Institutional Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
November 30, 1998
(All amounts in thousands, except shares)
<TABLE>
<CAPTION>
Shares Description Value
- ---------------------------------------------------------------
INTERNATIONAL EQUITY INDEX PORTFOLIO--CONTINUED
<C> <S> <C>
UNITED KINGDOM--Continued
8,070 LucasVarity PLC $ 28
17,515 Marks & Spencer PLC 119
1,714 Marley PLC 3
2,251 MEPC PLC 15
1,000 Meyer International PLC 6
4,000 Misys PLC 28
9,050 National Grid Group PLC 72
7,302 National Power PLC 62
2,000 Next PLC 16
1,000 Ocean Group PLC 12
3,699 Pearson PLC 67
3,896 Peninsular and Oriental Steam Navigation Co. 47
6,742 Pilkington PLC 7
1,929 Provident Financial PLC 29
12,000 Prudential Corp. PLC 175
2,000 Racal Electronics PLC 10
3,000 Railtrack Group PLC 82
4,215 Rank Group PLC 15
6,832 Reed International PLC 54
16,000 Rentokil Initial PLC 103
9,400 Reuters Holdings PLC 91
2,379 Rexam PLC 8
1,437 Rexam PLC, Class B* 2
6,562 Rio Tinto PLC (Registered) 77
2,000 RMC Group PLC 26
10,133 Rolls-Royce PLC 41
10,093 Royal & Sun Alliance Insurance Group PLC 84
5,749 Royal Bank Scotland Group PLC 87
4,000 Rugby Group PLC 5
6,261 Safeway PLC 31
12,679 Sainsbury (J) PLC 106
1,500 Schroders PLC 31
4,000 Scottish & Newcastle PLC 51
3,000 Scottish Hydro-Electric 35
8,000 Scottish Power PLC 85
993 Sears PLC 4
993 Selfridges PLC 4
12,000 Siebe PLC 43
3,000 Slough Estates PLC 13
34,178 SmithKline Beecham PLC 420
2,000 Smiths Industries PLC 28
3,000 St. James Place Capital PLC 14
5,000 Stagecoach Holdings PLC 19
6,194 Tarmac PLC 12
3,000 Tate & Lyle PLC 19
3,046 Taylor Woodrow PLC 8
44,153 Tesco PLC 130
1,833 Thames Water PLC 35
2,000 Thames Water PLC, Class B* 3
3,000 TI Group PLC 17
565 Transport Development Group PLC 2
</TABLE>
<TABLE>
<CAPTION>
Shares/
Principal
Amount Description Value
- -------------------------------------------------------------------------------
<C> <S> <C>
1,000 Transport Development Group PLC, Class B* 1
1,556 Unigate PLC 12
19,868 Unilever PLC $ 207
3,067 United Biscuits Holdings PLC 12
3,451 United Biscuits Holdings PLC, Class B* 1
3,000 United Utilities PLC 44
1,333 Vickers PLC 4
1,000 Viglen Technology PLC 0
19,190 Vodafone Group PLC 283
4,307 Williams PLC 27
4,666 Williams PLC, Class B* 2
1,000 Wilson (Connolly) Holdings PLC 2
2,000 Wimpey (George) PLC 4
4,000 Wolseley PLC 25
6,000 Zeneca Group PLC 250
-------
9,472
- -------------------------------------------------------------------------------
TOTAL COMMON STOCKS (Cost $40,786) $43,462
- -------------------------------------------------------------------------------
PREFERRED STOCKS--0.7%
AUSTRALIA--0.2%
12,422 News Corp. Ltd. $ 78
3,600 Star City Holdings Ltd.* 3
-------
81
-------
AUSTRIA--0.0%
12 Bau Holdings A.G.--Vorzug 0
4 Generali Holding Vienna A.G.--Vorzug 1
-------
1
-------
FRANCE--0.0%
100 Etablissements Econonmiques du Casino Guichard-Perrachon
S.A. 6
-------
GERMANY--0.5%
50 Axa Colonia Konzern A.G.--Non Voting 5
50 MAN A.G.--Vorzug 10
150 Metro A.G.--Vorzug 6
550 RWE A.G.--Non Voting 19
250 SAP A.G.--Vorzug 131
500 Volkswagen A.G.--Non Voting 26
-------
197
-------
ITALY--0.0%
7,300 Fiat S.p.A. 13
-------
UNITED KINGDON--0.0%
2,726 MEPC PLC, Class B 4
- -------------------------------------------------------------------------------
TOTAL PREFERRED STOCKS (Cost $225) $ 301
- -------------------------------------------------------------------------------
CORPORATE BONDS--0.0%
UNITED KINGDOM--0.0%
Viglen Technology PLC
$2 6.938% Due 9/1/00 $ 3
Viglen Technology PLC Letters of Entitlement to Litigation
Notes
1 4.12% Due 1/1/01 0
-------
3
- -------------------------------------------------------------------------------
TOTAL CORPORATE BONDS (Cost $4) $ 3
- -------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
66
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares/
Principal
Amount Description Value
- ------------------------------------------------------------------------
<C> <S> <C>
OTHER--1.5%
AUSTRALIA--0.2%
10,500 World Equity Benchmark Shares (WEBS) Index Series--
Australia $ 101
-------
BELGIUM--0.2%
5,500 WEBS Index Series--Belgium 106
-------
FRANCE--0.1%
2,500 WEBS Index Series--France 52
-------
GERMANY--0.7%
14,300 WEBS Index Series--Germany 308
-------
JAPAN--0.2%
7,500 WEBS Index Series--Japan 75
-------
SWITZERLAND--0.1%
1,200 WEBS Index Series--Switzerland 20
- ------------------------------------------------------------------------
TOTAL OTHER (Cost $650) $ 662
- ------------------------------------------------------------------------
SHORT-TERM INVESTMENT--0.6%
Societe Generale, Paris, France
$298 5.375%Due 12/1/98 $ 298
- ------------------------------------------------------------------------
TOTAL SHORT-TERM INVESTMENT (Cost $298) $ 298
- ------------------------------------------------------------------------
TOTAL INVESTMENTS--99.5%
(Cost $41,963) $44,726
- ------------------------------------------------------------------------
Other assets, less liabilities--0.5% 226
- ------------------------------------------------------------------------
NET ASSETS--100.0% $44,952
- ------------------------------------------------------------------------
- ------------------------------------------------------------------------
</TABLE>
*Non-income producing security.
At November 30, 1998 the Portfolio's investments, excluding the short-term
investment, were diversified as follows:
<TABLE>
<S> <C>
Industry/Sector
- ------------------------------
Banks 14.6%
Business Services 10.4
Capital Goods 6.5
Consumer Goods 13.3
Consumer Services 3.6
Energy/Utilities 4.8
Financial Services 10.4
Pharmaceuticals/Health 8.8
Multi-Industry 3.0
Raw Materials 6.4
Retail 4.2
Technology 4.2
Transportation 2.4
Utilities 7.4
- ------------------------------
Total 100.0%
- ------------------------------
</TABLE>
See accompanying notes to financial statements.
67
<PAGE>
Northern Institutional Funds
Equity Portfolios
- --------------------------------------------------------------------------------
Statements of Investments
November 30, 1998
(All amounts in thousands, except shares)
Shares Description Value
- ---------------------------
International Growth Portfolio
<TABLE>
<CAPTION>
<C> <S> <C>
COMMON STOCKS--94.4%
Australia--2.4%
145,000 Broken Hill Proprietary Co. Ltd. $ 1,153
55,000 News Corp. Ltd. ADR 1,540
--------
2,693
--------
Finland--0.4%
5,000 Nokia Oyj 490
--------
France--14.9%
18,000 Axa-UAP 2,333
12,000 Castorama Dubois Investisse 2,433
18,000 Elf Aquitaine S.A. 2,250
5,500 Groupe Danone S.A. 1,610
6,000 LVMH Moet-Hennessy Louis Vuitton 1,163
7,500 Societe Generale 1,185
14,000 Suez Lyonnaise des Eaux 2,772
9,000 Total S.A. 1,119
21,000 Valeo S.A. 1,803
--------
16,668
--------
Germany--10.5%
3,500 Allianz A.G. 1,264
20,000 Deutsche Bank A.G. 1,239
45,000 Hoechst A.G. 1,938
2,900 Karstadt A.G. 1,364
3,400 Muenchener Rueckversicherungse 1,568
22,000 Siemens A.G. 1,535
25,000 VEBA A.G. 1,390
18,000 Volkswagen A.G. 1,469
--------
11,767
--------
Greece--0.9%
40,000 Hellenic Telecommunication Organization S.A. 1,001
--------
India--0.6%
60,000 Mahanagar Telephone Nigam Ltd. 635
--------
Ireland--1.5%
25,000 Elan Corp. PLC ADR* 1,703
--------
Italy--6.0%
60,000 Assicurazioni Generali* 2,247
225,000 ENI S.p.A. 1,400
220,000 Telecom Italia S.p.A. 1,788
225,000 Unicredito Italiano S.p.A. 1,283
--------
6,718
--------
Japan--15.9%
440 DDI Corp. 1,432
20,000 Hirose Electric Co. Ltd. 1,342
25,000 Jafco Co. Ltd. 714
35,000 Jusco Co. Ltd. 668
180,000 Kirin Brewery Co. Ltd. 1,871
130,000 Mitsubishi Estate Co. Ltd. 1,244
135,000 Mitsubishi Heavy Industries Ltd. 506
150,000 Nikon Corp. 1,440
105,000 Pioneer Electronic Corp. 1,730
130,000 Sanwa Bank 1,179
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- ----------------------------------------------------------
<C> <S> <C>
135,000 Shiseido Co. Ltd. $ 1,539
150,000 Sumitomo Electric Industries 1,635
330,000 Toshiba Corp. 1,852
35,000 Uny Co. Ltd. 587
--------
17,739
--------
Netherlands--6.8%
12,000 Equant N.V.* 677
15,000 Getronics N.V. 658
23,000 ING Groep N.V. 1,321
10,000 Philips Electronics N.V. 633
21,000 Unilever N.V. 1,624
50,000 Vedior N.V. 1,023
8,500 Wolters Kluwer N.V. 1,625
--------
7,561
--------
Singapore--0.7%
100,000 Development Bank of Singapore Ltd. 759
--------
South Korea--1.2%
368 Daewoo Corp. 1
15,000 Samsung Display Devices Co. 545
15,000 Samsung Electronics 802
--------
1,348
--------
Spain--2.8%
50,000 Argentaria, Caja Postal y Banco 1,168
115,000 Iberdrola S.A. 1,910
--------
3,078
--------
Sweden--1.7%
105,000 Astra AB, A Shares 1,929
--------
Switzerland--6.7%
1,500 Novartis A.G. 2,824
130 Roche Holding A.G. (Genusss) 1,532
6,000 Swisscom A.G.* 2,026
3.800 UBS A.G. 1,147
--------
7,529
--------
Taiwan--0.7%
110,000 Acer, Inc.* 729
--------
United Kingdom--20.7%
105,000 Allied Zurich PLC* 1,508
100,000 Bass PLC 1,380
75,000 BOC Group PLC 1,090
260,000 British Sky Broadcasting Group PLC 2,150
220,000 Diageo PLC 2,466
30,000 Glaxo Wellcome PLC 1,905
215,000 Marks & Spencer PLC 1,462
110,000 Orange PLC* 1,126
110,000 Pearson PLC 1,979
110,000 PowerGen PLC 1,521
55,000 SEMA Group PLC 449
590,000 Shell Transport & Trading Co. 3,559
20,000 Smithkline Beecham PLC* 1,219
9,000 Vodafone Group PLC 1,329
--------
23,143
- ----------------------------------------------------------
TOTAL COMMON STOCKS (Cost $92,120) $105,490
- ----------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
68
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares/
Principal
Amount Description Value
- -------------------------------------------------------------------
<C> <S> <C>
PREFERRD STOCK--0.3%
Germany
700 SAP A.G. $ 365
- -------------------------------------------------------------------
TOTAL PREFERRED STOCK (Cost $467) $ 365
- -------------------------------------------------------------------
SHORT-TERM INVESTMENT--3.4%
Societe Generale, Paris, France
$3,861 5.375%Due 12/1/98 $ 3,861
- -------------------------------------------------------------------
TOTAL SHORT-TERM INVESTMENT (Cost $3,861) $ 3,861
- -------------------------------------------------------------------
WARRANTS--0.0%
192 Muenchener Rueckversicherungs-New Shares* $ 8
- -------------------------------------------------------------------
TOTAL WARRANTS (Cost $6) $ 8
- -------------------------------------------------------------------
TOTAL INVESTMENTS--98.1%
(Cost $96,454) $109,724
- -------------------------------------------------------------------
Other assets, less liabilities--1.9% 2,073
- -------------------------------------------------------------------
NET ASSETS--100.0% $111,797
===================================================================
</TABLE>
*Non-income producing security.
At November 30, 1998 the Portfolio's investments, excluding the short-term
investment, were diversified as follows:
<TABLE>
<CAPTION>
Industry/Sector
- -----------------------------------
<S> <C>
Auto 1.3%
Basic Industry 12.9
Capital Goods 6.6
Consumer Goods 32.2
Financial Services 16.9
Pharmaceuticals/Health Care 1.5
Real Estate 1.1
Technology 18.4
Utilities 1.5
Other 7.6
- -----------------------------------
Total 100.0%
- -----------------------------------
</TABLE>
See accompanying notes to financial statements.
69
<PAGE>
Northern Institutional Funds
Equity Portfolios
- --------------------------------------------------------------------------------
Statements of Investments
November 30, 1998
(All amounts in thousands, except shares)
<TABLE>
<CAPTION>
Shares Description Value
- --------------------------------------------------------
Small Company Index Portfolio
<C> <S> <C>
COMMON STOCK--83.7%
Advertising--0.4%
3,325 Advo, Inc.* $ 86
2,700 Catalina Marketing Corp.* 158
1,400 CKS Group, Inc.* 47
3,200 Getty Images, Inc.* 55
100 Grey Advertising, Inc. 36
3,200 Ha-Lo Industries, Inc.* 102
5,500 Sitel Corp.* 14
1,600 TMP Worldwide, Inc.* 51
--------
549
--------
Aerospace and Defense--0.6%
4,100 AAR Corp. 104
1,300 Alliant Techsystems, Inc.* 99
900 Banner Aerospace, Inc.* 8
4,100 BE Aerospace, Inc.* 97
700 Curtiss-Wright Corp. 26
1,250 Ducommun, Inc.* 21
2,000 Fairchild Corp. (The)* 32
5,000 GenCorp., Inc. 123
900 Heico Corp.* 22
3,400 Kaman Corp. 55
1,700 Kellstrom Industry, Inc.* 42
800 L-3 Communications Holdings, Inc.* 37
1,650 Nichols Research Corp.* 35
600 Primex Technologies, Inc. 24
2,900 Remec, Inc.* 40
900 Sequa Corp.* 57
--------
822
--------
Agriculture--0.1%
5,700 Agribiotech, Inc.* 74
1,600 Agribrands International, Inc.* 49
4,900 Cadiz, Inc.* 44
1,300 Tejon Ranch Co.* 26
--------
193
--------
Airlines--0.5%
8,200 Airtran Holdings, Inc.* 33
3,800 Alaska Airgroup, Inc.* 142
6,130 America West Holding Corp., Class B* 87
400 Amtran, Inc.* 9
3,200 ASA Holdings, Inc. 109
1,800 Atlantic Coast Airlines Holdings* 46
3,700 Mesa Air Group, Inc.* 30
1,750 Mesaba Holdings, Inc.* 33
2,025 Midwest Express Holdings* 56
3,000 Skywest, Inc. 81
8,400 Trans World Airlines* 43
--------
669
--------
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- -----------------------------------------------------------
<C> <S> <C>
Apparel--0.6%
2,800 Authentic Fitness Corp.* $ 45
9,000 Burlington Industries, Inc. 94
900 Columbia Sportswear Co.* 20
2,700 Cone Mills Corp.* 12
1,600 Donna Karan International, Inc.* 12
1,700 Galey & Lord, Inc.* 18
900 Guess ?, Inc.* 3
3,900 Hartmarx Corp.* 23
3,150 Kellwood Co. 85
4,900 Nautica Enterprises, Inc.* 96
3,700 Nine West Group, Inc.* 46
1,800 Oshkosh B'gosh, Inc. 43
900 Oxford Industries, Inc. 26
3,400 Phillips-Van Heusen Corp. 24
2,000 Quiksilver, Inc.* 49
4,500 Russell Corp. 107
2,400 St. John Knits, Inc. 48
6,800 Stride Rite Corp. 60
800 Timberland Co.* 33
6,000 Wolverine World Wide, Inc.* 82
--------
926
--------
Auto Manufacturers--0.0%
3,400 Wabash National Corp. 64
--------
Auto Parts and Equipment--0.8%
2,400 Aftermarket Technology Corp.* 14
3,400 Arvin Industries, Inc. 143
2,000 Bandag, Inc. 71
3,200 Borg-Warner Automotive, Inc.* 160
2,300 Breed Technologies, Inc.* 16
3,100 Delco Remy International, Inc.* 34
1,200 Detroit Diesel Corp.* 25
1,600 Excel Industries, Inc. 28
2,500 Exide Corp.* 44
2,600 Hayes Lemmerz International, Inc.* 82
5,800 Miller Industries, Inc.* 28
2,400 OEA, Inc.* 31
2,500 Simpson Industries 26
1,500 Standard Motor Products, Inc. 34
2,425 Standard Products Co. 45
3,000 Superior Industries International, Inc. 78
2,525 Titan International, Inc.* 25
6,800 Tower Automotive, Inc.* 155
2,143 Wynn's International, Inc. 48
--------
1,087
--------
Banks--5.7%
1,000 Alabama National BanCorp. 26
4,250 Amcore Financial, Inc. 100
1,400 Area Bancshares Corp. 38
500 Bancfirst Corp. 20
1,000 Bancfirst Ohio Corp. 30
7,300 BancorpSouth, Inc. 140
2,400 Bancwest Corp. 104
</TABLE>
See accompanying notes to financial statements.
70
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Description Value
- ------------------------------------------------------
<C> <S> <C>
1,727 Bank of Granite Corp. $ 49
2,200 Banknorth Group, Inc. 73
808 BOK Financial Corp. 38
1,845 Brenton Banks, Inc. 33
1,000 BSB BanCorp., Inc. 29
1,860 BT Financial Corp. 52
500 Capital City Bank Group, Inc. 15
2,700 Carolina First Corp. 67
1,100 Cathay BanCorp., Inc. 42
2,285 Centennial BanCorp.* 41
1,300 Century South Banks, Inc. 38
1,583 Chemical Financial Corp. 67
2,108 Chittenden Corp. 64
3,650 Citizens Banking Corp. 118
1,000 City Holding Co. 34
4,576 CNB Bancshares, Inc. 198
1,500 Columbia Banking Systems, Inc.* 29
3,273 Commerce BanCorp., Inc. 156
1,100 Community Bank System, Inc. 32
6,900 Community First Bankshares, Inc. 147
1,430 Community Trust BanCorp. 33
1,200 Corus Bankshares, Inc. 44
3,880 Cullen/Frost Bankers, Inc. 208
1,450 CVB Financial Corp. 35
1,300 Evergreen BanCorp., Inc. 38
940 F & M BanCorp. 32
1,606 F & M BanCorp., Inc. 51
3,255 F & M National Corp. 98
2,442 F.N.B. Corp. 69
1,000 Farmers Capital Bank Corp. 35
3,750 First BanCorp. of Puerto Rico 103
1,200 First Charter Corp. 21
900 First Citizens Bancshares, Inc. 77
1,800 First Commerce Bancshares, Inc. 52
3,200 First Commonwealth Financial Corp. 78
3,834 First Financial BanCorp. 129
1,389 First Financial Bankshares, Inc. 51
952 First Financial Corp. 42
1,500 First Merchants Corp. 43
3,813 First Midwest BanCorp., Inc. 148
1,400 First Republic Bank Corp.* 36
1,574 First Source Corp. 51
3,100 First United Bancshares, Inc. 61
1,632 First Western BanCorp. 51
900 Frontier Financial Corp.* 44
2,100 GBC BanCorp. 52
1,200 Gold Banc Corp., Inc.* 20
2,170 Grand Premier Financial, Inc. 28
1,300 Greater Bay BanCorp. 45
1,200 Hamilton BanCorp., Inc.* 30
1,410 Hancock Holding Co. 63
1,068 Harleysville National Corp. 39
1,200 Horizon BanCorp., Inc. 44
4,012 Hubco, Inc. 108
4,981 Imperial BanCorp.* 77
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- -----------------------------------------------------------
<C> <S> <C>
1,800 Independent Bank Corp. $ 28
1,600 International Bancshares Corp. 86
1,000 Investors Financial Services Co. 56
1,700 Irwin Financial Corp. 49
1,533 Jeffbanks, Inc. 35
900 Mahoning National BanCorp. 29
2,100 MainStreet Financial Corp. 90
1,100 Merchants New York BanCorp. 39
400 Michigan Financial Corp. 14
1,170 Mid-America BanCorp. 30
900 Mississippi Valley Bancshares, Inc. 33
1,883 N B T BanCorp., Inc. 47
2,300 National BanCorp. of Alaska 71
800 National City BanCorp.* 21
1,769 National City Bancshares, Inc. 67
1,885 National Penn Bancshares, Inc. 61
4,019 Old National BanCorp. 209
1,300 Omega Financial Corp. 39
4,831 One Valley BanCorp., Inc. 159
1,600 Oriental Financial Group 49
1,200 Park National Corp. 115
900 Peoples Holding Co. (The) 29
600 Pinnacle Banc Group, Inc. 17
2,500 Premier Bancshares, Inc. 58
600 Prime Banchsares, Inc. 10
1,400 Prime BanCorp., Inc. 27
3,552 Provident Bankshares Corp. 95
600 Republic Banchsares, Inc.* 11
3,112 Republic BanCorp. 52
1,000 Republic Banking Corp. 11
6,916 Republic Security Finl Corp. 77
2,800 Riggs National Corp. of Washington D.C. 59
4,100 S & T BanCorp., Inc. 109
1,400 Sandy Springs BanCorp., Inc. 46
2,300 Santa Barbara BanCorp. 58
1,000 Shoreline Financial Corp. 26
1,375 Signal Corp. 47
2,800 Silicon Valley Bancshares* 70
800 Simmons First National Corp. 32
5,733 Sky Financial Group, Inc. 174
3,000 Southwest BanCorp. of Texas 54
1,200 Sterling BanCorp. 25
3,150 Sterling Bancshares, Inc. 50
800 Sterling Financial Corp. 33
4,993 Susquehanna Bancshares, Inc. 111
2,150 Texas Regional Bancshares 59
3,200 Triangle BanCorp., Inc. 61
2,400 Trust Co. of New Jersey 58
3,955 Trustco Bank Corp. 111
2,163 UMB Financial Corp. 96
5,700 United Bankshares, Inc. 163
1,510 United National BanCorp. 35
2,000 US BanCorp., Inc. 39
1,000 USB Holding Co., Inc. 16
</TABLE>
See accompanying notes to financial statements.
71
<PAGE>
Northern Institutional Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
November 30, 1998
(All amounts in thousands, except shares)
<TABLE>
<CAPTION>
Shares Description Value
- ------------------------------------------------------------
SMALL COMPANY INDEX PORTFOLIO--CONTINUED
<C> <S> <C>
BANKS--Continued
6,228 UST Corp. $ 154
1,900 Vermont Financial Services Corp. 45
1,500 Washington Trust BanCorp. 32
3,050 Wesbanco, Inc. 84
2,050 West Coast BanCorp. of Oregon 44
6,200 Westamerica BanCorp. 224
2,300 Western BanCorp. 75
6,200 Westernbank Puerto Rico 82
3,275 Whitney Holding Corp. 121
--------
8,023
--------
BEVERAGES--0.4%
5,100 Adolph Coors Co. 254
2,600 Beringer Wine Estates Holdings* 95
2,100 Boston Beer Co., Inc.* 18
2,300 Canandaigua Brands, Inc.* 114
300 Coca-Cola Bottling Co. Consolidated 17
98 Farmer Bros. Co. 19
1,200 Robert Mondavi* 44
--------
561
--------
BIOTECHNOLOGY--1.0%
4,200 Advanced Tissue Sciences, Inc.* 12
2,200 Affymetrix, Inc.* 55
1,900 Aviron* 41
1,500 Bio-Rad Laboratories, Inc.* 32
7,100 Bio-Technology General Corp.* 48
3,400 Cell Genesys, Inc.* 17
1,500 Entremed, Inc.* 37
3,194 Enzo Biochem, Inc.* 42
3,300 Human Genome Sciences, Inc.* 103
5,100 Icos Corp.* 111
2,600 Idec Pharmaceuticals Corp.* 87
3,300 Incyte Pharmaceuticals, Inc.* 103
2,300 Inhale Therapeutic Systems, Inc.* 74
300 Lab One, Inc. 4
5,600 Liposome Co., Inc.* 51
4,100 Millennium Pharmaceuticals, Inc.* 84
1,700 Neurogen Corp.* 29
4,356 Organogenesis, Inc.* 58
2,700 Protein Design Labs, Inc.* 59
3,300 Regeneron Pharmaceutical, Inc.* 27
3,500 Serologicals Corp.* 103
1,500 Sugen, Inc.* 21
2,500 Transkaryotic Therapies, Inc.* 56
2,300 Vical, Inc.* 38
--------
1,292
--------
BUILDING MATERIALS--1.1%
2,100 Advanced Lighting Technologies, Inc.* 18
600 Ameron International Corp. 22
4,100 Apogee Enterprises, Inc. 51
750 Butler MFG Co. 17
2,900 Calmat Co. 89
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- ------------------------------------------------------
<C> <S> <C>
1,400 Centex Construction Products, Inc. $ 50
4,500 Comfort Systems USA, Inc.* 84
5,100 Dal-Tile International, Inc.* 44
1,800 Deltic Timber Corp. 36
1,950 Elcor Corp. 60
2,000 Florida Rock Industries, Inc. 59
1,800 Genlyte Group, Inc.* 34
1,400 Giant Cement Holding, Inc.* 34
1,600 Holophane Corp.* 37
5,600 Homebase, Inc.* 32
7,500 Hussmann International, Inc.* 124
2,600 Juno Lighting, Inc. 61
1,500 Lone Star Industries, Inc. 114
3,200 Modine Manufacturing Co. 117
2,600 NCI Building Systems, Inc.* 64
1,400 Nortek, Inc.* 38
600 Puerto Rican Cement Co., Inc. 22
4,100 Rayonier, Inc. 174
1,300 Republic Group, Inc. 22
600 Simpson Manufacturing Co., Inc.* 23
2,350 Thomas Industries, Inc. 41
1,900 TJ International, Inc. 45
2,200 Universal Forest Products, Inc.* 44
--------
1,556
--------
CHEMICALS--1.4%
9,100 Airgas, Inc.* 92
3,100 Albemarle Corp. 58
900 Bush Boake Allen, Inc.* 31
3,392 Cambrex Corp. 95
1,300 Carbide/Graphite Group* 17
2,800 Chemfirst, Inc. 53
9,100 Ethyl Corp. 53
5,400 Ferro Corp. 151
1,900 Fuller (H. B.) Co. 83
1,300 General Chemical Group, Inc. 22
3,400 Geon Co. 76
4,500 Georgia Gulf Corp. 84
6,500 Hanna (M.A.) Co. 91
3,700 Lawter International, Inc. 31
1,300 Learonal, Inc. 29
3,375 Lilly Industries, Inc. 63
2,100 Macdermid, Inc. 77
1,200 Mcwhorter Technologies, Inc.* 28
2,900 Minerals Technologies, Inc. 127
3,868 Mississippi Chemical Corp. 61
3,100 NL Industries, Inc. 41
2,200 Octel Corp.* 32
3,500 OM Group, Inc. 127
900 Penford Corp. 14
5,100 Schulman (A.), Inc. 109
2,700 Scotts Co. (The)* 98
1,900 Spartech Corp. 38
1,000 Stepan Co. 28
4,800 Terra Industries, Inc. 26
1,600 Tetra Technologies, Inc.* 20
</TABLE>
See accompanying notes to financial statements.
72
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Description Value
- ----------------------------------------------------------
<C> <S> <C>
1,100 Valhi, Inc. $ 12
5,000 Wellman, Inc. 61
--------
1,928
--------
COMMERCIAL SERVICES--4.8%
2,200 Aaron Rents, Inc.* 34
1,200 Abacus Direct Corp.* 69
2,420 ABM Industries, Inc. 81
4,200 ABR Information Services, Inc.* 71
3,000 Access Health, Inc.* 108
900 Administaff, Inc.* 24
800 AHL Services, Inc.* 26
2,100 Alternative Resources Corp.* 20
4,000 American Oncology Resources, Inc.* 45
2,200 Ameripath, Inc.* 10
4,200 Avis Rent A Car, Inc.* 88
600 Bacou USA, Inc.* 11
347 Berlitz International, Inc.* 10
2,500 Big Flower Holdings, Inc.* 61
5,000 Billing Concepts Corp.* 64
1,900 Borg-Warner Security Corp.* 35
1,500 Boron Lepore & Associates, Inc.* 46
4,000 Budget Group, Inc.* 50
5,300 Building One Services Corp.* 90
3,500 Caribiner International, Inc.* 33
1,300 Carriage Services, Inc.* 33
1,700 CDI Corp.* 46
1,700 Central Parking Corp.* 50
6,700 Century Business Services, Inc.* 90
1,300 Chemed Corp. 44
1,900 Coinmach Laundry Corp.* 31
2,600 Computer Learning Centers* 17
6,907 Concentra Managed Care, Inc.* 82
1,900 Cort Business Service Corp.* 43
5,150 Crawford & Co. 79
1,200 Crescent Operating, Inc.* 5
700 Data Processing Resources, Inc.* 17
1,400 Data Transmission Network Corp.* 38
1,100 DBT Online, Inc.* 19
8,800 Devry, Inc.* 232
1,000 Diamond Technology Partners, Inc.* 14
3,500 Dollar Thrifty Automotive Group, Inc.* 44
700 Duff & Phelps Credit Rating, Inc. 36
1,300 Education Management, Inc.* 59
400 Edutreck International, Inc.* 3
3,100 Envoy Corp.* 124
3,000 Equity Corp. International, Inc.* 78
1,400 F.Y.I., Inc.* 44
1,600 First Consulting Group, Inc.* 38
300 Forrester Research, Inc.* 9
3,400 Franklin Covey Co.* 64
3,600 Group Maintenance American Corp.* 48
1,000 Hagler Bailly, Inc.* 18
1,043 Healthplan Services Corp. 10
1,800 Home Choice Holdings, Inc.* 29
2,100 Hooper Holmes, Inc.* 49
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- ------------------------------------------------------------
<C> <S> <C>
2,900 Horizon Software, Inc. $ 18
2,100 Inacom Corp.* 44
2,600 Integrated Electrical Services, Inc.* 50
6,900 Interim Services, Inc.* 143
1,800 International Telcomm Data Systems, Inc. 44
2,550 Iron Mountain, Inc.* 75
2,550 ITT Educational Services, Inc.* 84
1,100 Kendle International, Inc.* 25
1,300 Kroll-O'Gara Co.* 40
3,400 Labor Ready, Inc.* 74
1,200 Landauer, Inc. 34
1,700 Lason, Inc.* 104
1,300 Learning Tree International, Inc.* 11
700 Leasing Solutions, Inc.* 3
1,100 Maximus, Inc.* 34
1,100 Mcgrath RentCorp. 22
11,500 Medaphis Corp.* 33
3,400 Medquist, Inc.* 103
1,800 Memberworks, Inc.* 44
1,200 Meta Group, Inc.* 30
4,300 Metamor Worldwide, Inc.* 102
1,500 Metzler Group, Inc.* 62
2,500 Midas, Inc. 78
900 National Processing, Inc.* 5
1,250 NCO Group, Inc.* 46
2,550 NFO Worldwide, Inc.* 32
2,300 Norrell Corp. 37
9,690 Nova Corp.* 308
4,100 Novacare Employee Services, Inc.* 25
9,900 Olsten Corp. 74
1,600 On Assignment, Inc.* 57
5,300 Orthodontic Centers of America* 101
228 Panavision, Inc.* 4
3,600 Parexel International Corp.* 94
2,300 Paymentech, Inc.* 37
2,200 Pediatrix Medical Group, Inc.* 118
4,800 Personnel Group of America, Inc.* 79
2,445 Pharmaceutical Product Development* 70
11,500 Phycor, Inc.* 70
2,500 Phymatrix, Inc.* 7
4,100 Physician Reliance Network, Inc.* 38
1,100 Pierce Leahy Corp.* 27
1,050 Pinkertons, Inc.* 21
2,800 Prepaid Legal Services, Inc.* 73
3,300 Primark Corp.* 83
1,600 Probusiness Services, Inc.* 70
1,600 Profit Recovery Group International* 54
3,200 Protection One, Inc.* 31
600 Remedytemp, Inc.* 9
2,060 Renaissance Worldwide, Inc.* 15
3,400 Rental Services Corp.* 72
2,200 Renters Choice, Inc.* 53
1,400 Rent-Way, Inc.* 38
2,800 Rollins, Inc. 48
5,113 Romac International, Inc.* 71
</TABLE>
See accompanying notes to financial statements.
73
<PAGE>
Northern Institutional Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
November 30, 1998
(All amounts in thousands, except shares)
<TABLE>
<CAPTION>
Shares Description Value
- ------------------------------------------------------------
SMALL COMPANY INDEX PORTFOLIO--CONTINUED
<C> <S> <C>
COMMERCIAL SERVICES--Continued
4,000 Ruddick Corp. $ 78
2,100 Rural/Metro Corp.* 22
400 S M & A Corp.* 5
2,100 Service Experts, Inc.* 62
1,200 SOS Staffing Services, Inc.* 9
5,900 Sotheby's Holdings, Inc. 165
2,400 Staff Leasing, Inc.* 22
2,500 Staffmark, Inc.* 58
1,050 Strayer Education, Inc. 39
1,000 Superior Consultant Holdings, Inc.* 37
5,575 Sylvan Learning Systems, Inc.* 162
3,000 Teletech Holdings, Inc.* 27
3,000 Trico Marine Services, Inc.* 17
2,000 Trico Marine Services, Inc. 52
3,055 United Rentals, Inc.* 80
6,300 USWeb Corp.* 143
1,000 Vincam Group, Inc.* 15
1,200 Volt Information Sciences, Inc.* 28
1,500 Wackenhut Corrections Corp.* 41
1,397 Wackhenut Corp. 34
800 Westaff, Inc.* 5
--------
6,694
--------
COMPUTERS--3.6%
1,700 Anacomp, Inc.* 24
3,111 Analysts International Corp. 52
3,900 Anixter International, Inc.* 64
500 AnswerThink Consulting Group, Inc.* 10
700 Apex PC Solutions, Inc.* 18
700 ARIS Corp.* 11
1,500 Aspec Technology, Inc.* 3
4,175 Avant! Corp.* 70
3,600 Axent Technologies, Inc.* 94
2,700 BA Merchant Services, Inc.* 45
3,066 Banctec, Inc.* 40
2,200 Bell & Howell Co.* 74
3,400 Bisys Group, Inc.* 164
6,300 Checkfree Holdings Corp.* 102
1,400 Complete Business Solutions* 34
2,600 Compucom Systems, Inc.* 10
4,500 Computer Horizons Corp.* 101
275 Computer Management Sciences* 5
2,500 Computer Task Group, Inc.* 68
1,800 Cotelligent, Inc.* 33
2,300 Cylink Corp.* 19
7,300 Data General Corp.* 132
1,500 DecisionOne Holdings Corp.* 11
5,200 Diamond Multimedia Systems* 34
7,700 Electronics for Imaging, Inc.* 206
1,500 Evans & Sutherland CMP Corp.* 29
800 Factset Research Systems, Inc.* 33
1,850 Henry (Jack) & Associates 93
5,600 HMT Technology Corp.* 64
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- ------------------------------------------------------
<C> <S> <C>
2,900 Hutchinson Technology* $ 90
1,300 Hypercom Corp.* 15
800 Icon CMT Corp.* 11
500 Intelligroup, Inc.* 8
6,200 Intergraph Corp.* 40
2,900 International Network Services* 158
700 ISS Group, Inc.* 26
7,800 Komag, Inc.* 57
1,200 Kronos, Inc.* 52
400 Manhattan Associates, Inc.* 7
2,900 Mastech Corp.* 77
9,000 Mentor Graphics Corp.* 78
5,100 Micron Electronics, Inc.* 116
2,400 Micros Systems, Inc.* 68
4,300 MMC Networks, Inc.* 56
3,700 MTI Technology Corp.* 15
2,700 MTS Systems Corp. 35
4,100 National Computer Systems, Inc. 135
2,900 Neomagic Corp.* 55
4,500 Network Appliance, Inc.* 338
1,300 Pomeroy Computer Resources* 25
1,100 QRS Corp.* 46
800 Radiant Systems, Inc.* 6
2,100 Rambus, Inc.* 186
6,600 Read-Rite Corp.* 89
500 RWD Technologies, Inc.* 10
7,500 S3, Inc.* 40
4,100 Safeguard Scientifics, Inc.* 116
2,800 Sandisk Corp.* 33
1,700 SCM Microsystems, Inc.* 101
5,600 Security Dynamics Technologies* 85
6,400 Sequent Computer Systems, Inc.* 82
3,800 Smart Modular Technologies* 79
2,000 Splash Technology Holdings* 17
900 SPR, Inc.* 16
2,500 Sykes Enterprises, Inc.* 51
700 Syntel, Inc.* 9
5,000 Systems & Computer Technology Co.* 91
6,025 Technology Solutions Co.* 56
2,400 Telxon Corp.* 65
3,800 Tyler Corp.* 25
6,500 Vanstar Corp.* 78
500 Verisign, Inc.* 20
2,900 Visual Networks, Inc.* 101
6,800 Wang Laboratories* 173
4,200 Whittman-Hart, Inc.* 93
3,400 Xircom, Inc.* 103
5,000 Xylan Corp.* 91
2,700 Zebra Technologies Corp.* 91
--------
5,058
--------
CONSUMER PRODUCTS--0.2%
400 800-Jr Cigar, Inc.* 6
1,500 Consolidated Cigar Holdings, Inc.* 17
6,500 Dimon, Inc. 53
</TABLE>
See accompanying notes to financial statements.
74
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Description Value
- ---------------------------------------------------------
<C> <S> <C>
1,300 General Cigar Holdings, Inc.* $ 13
5,000 Universal Corp. 176
--------
265
--------
COSMETICS AND PERSONAL CARE--0.1%
1,400 Chattem, Inc.* 60
1,000 French Fragrances, Inc.* 7
2,123 Natures Sunshine Products, Inc. 33
4,800 Playtex Products, Inc.* 74
--------
174
--------
DISTRIBUTION AND WHOLESALE--0.8%
2,800 Anicom, Inc. 29
2,800 Aviall, Inc.* 34
1,000 Aviation Sales Co.* 37
7,624 Brightpoint, Inc.* 114
1,000 CDW Computer Centers, Inc.* 81
4,900 Cellstar Corp.* 32
4,600 CHS Electronics, Inc.* 68
1,600 Daisytek International Corp.* 25
2,750 Insight Enterprises, Inc.* 116
600 JLK Direct Distribution, Inc.* 7
2,300 Keystone Automotive Industries, Inc.* 44
11,800 Merisel, Inc.* 34
2,950 Microage, Inc.* 52
2,900 Owens & Minor, Inc. Holding Co. 50
1,600 Tristar Aerospace Co.* 12
1,700 U.S.A. Floral Products, Inc.* 20
10,300 Unisource Worldwide, Inc. 81
5,400 United Stationers, Inc.* 143
2,100 VWR Scientific Products Corp.* 66
2,800 Watsco, Inc. 50
--------
1,095
--------
DIVERSIFIED FINANCIAL SERVICES--1.4%
3,150 Aames Financial Corp.* 6
3,400 Advanta Corp. 35
1,100 Advest Group, Inc. 26
2,600 Affiliated Managers Group* 70
9,100 Americredit Corp.* 126
1,500 Ameritrade Holding Corp.* 37
500 Amplicon, Inc. 8
300 Capital Factors Holdings, Inc. 5
3,000 Charter Municipal Mortgage Acceptance 38
2,500 Cityscape Financial Corp. 0
1,900 Conning Corp. 33
1,400 Contifinancial Corp.* 8
3,300 Credit Acceptance Corp.* 22
1,800 Dain Rauscher Corp. 67
600 Delta Financial Corp.* 3
4,600 Doral Financial Corp. 82
1,700 DVI, Inc.* 30
5,300 E*trade Group, Inc.* 143
4,200 Eaton Vance Corp. 102
1,900 Everen Capital Corp. 47
400 Federal Agricultural Mortgage Co.* 15
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- ----------------------------------------------------------
<C> <S> <C>
1,350 Financial Federal Corp.* $ 36
1,600 First Sierra Financial, Inc.* 14
600 Firstcity Financial Corp.* 8
1,200 Franchise Mortgage Acceptance Corp.* 12
1,900 Freedom Securities Corp. 34
3,500 Friedman, Billings, Ramsey Group* 21
800 Fund American Enterprise Holdings, Inc 113
2,600 Hambrecht & Quist, Inc.* 63
2,900 Headlands Mortgage Co.* 48
1,700 Healthcare Financial Partners* 56
3,700 IMC Mortgage Co.* 2
4,364 Imperial Credit Industries* 44
500 Investment Technology Group* 26
2,000 Jefferies Group, Inc. 93
900 John Nuveen Co. 33
3,200 Long Beach Financial Corp.* 25
1,600 Medallion Financial Corp. 25
2,846 Metris Cos., Inc.* 95
4,037 Morgan Keegan, Inc. 81
6,450 Phoenix Investment Partners Ltd. 55
3,200 Pioneer Group, Inc.* 58
3,000 Resource America, Inc. 36
2,196 Resource Bancshares MTG Group 30
91 Search Financial Services 0
1,100 Southern Pacific Funding Corp. 0
1,560 Southwest Securities Group 31
600 Student Loan Corp. 27
6,500 UniCapital Corp.* 54
3,020 United Cos. Financial Corp.* 12
--------
2,035
--------
ELECTRIC--2.3%
3,150 Black Hills Corp. 78
3,000 Calpine Corp.* 72
2,500 Central Hudson Gas & Electric 101
2,000 CilCorp., Inc. 121
3,300 Cleco Corp. 113
4,800 CMP Group, Inc. 86
2,700 Commonwealth Energy System 104
3,000 Eastern Utilities Associates 74
8,100 EL Paso Electric Co.* 75
2,500 Empire District Electric Co. 55
4,650 Hawaiian Electric Industries 181
5,500 IdaCorp., Inc. 192
2,350 Madison Gas & Electric Co. 54
7,775 MDU Resources Group, Inc. 197
5,000 Minnesota Power, Inc. 209
7,500 Nevada Power Co. 178
3,078 Northwestern Corp. 73
2,000 Orange & Rockland Utilities 113
1,700 Otter Tail Power Co. 68
6,100 Public Service Co. of New Mexico 119
5,700 Rochester Gas & Electric Corp. 175
4,500 Sierra Pacific Resources 162
3,450 Southern Indiana Gas & Electric 116
1,600 TNP Enterprises, Inc. 61
</TABLE>
See accompanying notes to financial statements.
75
<PAGE>
Northern Institutional Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
November 30, 1998
(All amounts in thousands, except shares)
<TABLE>
<CAPTION>
Shares Description Value
- ------------------------------------------------------------
SMALL COMPANY INDEX PORTFOLIO--CONTINUED
<C> <S> <C>
ELECTRIC--Continued
4,680 Unisource Energy Corp. Holding* $ 70
2,100 United Illuminating Co. 105
8,250 Washington Water Power 151
3,500 WPS Resources Corp. 118
--------
3,221
--------
ELECTRICAL COMPONENTS AND EQUIPMENT--1.2%
1,075 AFC Cable Systems, Inc.* 32
2,500 Alpine Group, Inc.* 39
4,800 Ametek, Inc. 100
4,896 Artesyn Technologies, Inc.* 82
2,200 Barnes Group, Inc. 68
3,800 Belden, Inc. 64
1,800 C&D Technologies, Inc. 52
4,375 Cable Design Technologies Corp.* 81
4,900 C-Cube Microsystems, Inc.* 128
2,168 Electro Rent Corp.* 26
1,900 Encore Wire Corp.* 25
4,300 Essex International, Inc.* 139
3,400 FSI International, Inc.* 27
5,400 General Cable Corp. 103
3,100 Jabil Circuit, Inc.* 180
3,400 Kulicke & Soffa Industries* 58
2,900 Littelfuse, Inc.* 68
4,000 Royavac Corp. 93
1,600 Scotsman Industries, Inc. 33
2,175 SLI, Inc.* 48
700 Special Devices, Inc.* 23
2,800 Tecumseh Products Co. 139
2,900 Vicor Corp.* 26
--------
1,634
--------
ELECTRONICS--2.2%
1,000 Aavid Thermal Technologies* 18
2,300 Amphenol Corp.* 75
900 Analogic Corp. 32
1,500 Benchmark Electronics, Inc.* 38
3,900 BMC Industries, Inc.* 24
4,500 Checkpoint Systems, Inc.* 60
3,500 Coherent, Inc.* 44
1,400 Cohu, Inc. 32
3,200 Credence Systems Corp.* 63
1,609 CTS Corp. 57
676 Cubic Corp. 14
4,200 Cymer, Inc.* 63
3,600 DII Group, Inc.* 75
3,300 Dionex Corp.* 102
1,100 Dynatech Corp. 3
1,700 Electro Scientific Industries, Inc.* 51
5,900 Fisher Scientific International 109
5,778 Flowserve Corp. 103
4,200 Genrad, Inc.* 68
10,500 Gentex Corp.* 193
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- -------------------------------------------------------
<C> <S> <C>
2,000 Hadco Corp.* $ 70
1,500 Harmon Industries, Inc. 38
2,200 Innovex, Inc. 35
12,000 Integrated Device Technology, Inc.* 71
1,300 ITI Technologies, Inc.* 35
1,400 Itron, Inc.* 9
5,600 Kemet Corp.* 79
4,000 Kent Electronics Corp.* 57
2,600 Lo-Jack Corp.* 24
5,250 Methode Electronics 72
5,600 Mettler Toledo International* 147
2,000 Micrel, Inc.* 81
7,500 Microchip Technology, Inc.* 261
1,000 Moog, Inc.* 29
2,640 OAK Industries, Inc.* 82
1,398 Park Electrochemical Corp. 27
5,232 Paxar Corp.* 55
57 Perkin-Elmer Corp. 0
1,500 Recoton Corp.* 28
1,100 Rogers Corp.* 30
1,800 Sawtek, Inc.* 39
9,800 Sensormatic Electronics Corp.* 80
2,600 Sipex Corp.* 84
1,300 Spectra-Physics Lasers, Inc.* 12
1,700 Stoneridge, Inc.* 31
3,200 Tava Technologies, Inc.* 18
2,100 Technitrol, Inc. 63
2,300 Thermedics, Inc.* 24
400 Thermo Optek Corp.* 4
400 Thermoquest Corp.* 4
3,300 Trimble Navigation Ltd.* 29
1,700 Triumph Group, Inc.* 57
1,300 Veeco Instruments, Inc.* 47
7,600 Vishay Intertechnology, Inc.* 108
2,400 Watts Industries 45
1,300 Woodward Governor Co. 33
2,500 X-Rite, Inc. 22
--------
3,154
--------
ENGINEERING AND CONSTRUCTION--0.4%
2,400 Dames & Moore Group 31
1,800 Dycom Industries, Inc.* 71
6,000 Foster Wheeler Corp. 103
2,775 Granite Construction, Inc. 90
3,100 Insituform Technologies, Inc.* 41
3,200 Jacobs Engineering Group, Inc.* 121
4,891 Morrison Knudsen Corp.* 47
1,000 Stone & Webster, Inc. 34
1,800 URS Corp.* 37
--------
575
--------
ENTERTAINMENT--1.0%
900 AMC Entertainment, Inc.* 15
1,100 Anchor Gaming* 56
4,400 Ascent Entertainment Group* 35
6,600 Aztar Corp.* 33
</TABLE>
See accompanying notes to financial statements.
76
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Description Value
- -----------------------------------------------------
<C> <S> <C>
5,300 Boyd Gaming Corp.* $ 19
1,100 Carmike Cinemas, Inc.* 22
1,500 Championship Auto Racing Teams* 42
1,100 Churchill Downs, Inc. 33
1,500 Dover Downs Entertainment 17
800 GC Companies, Inc.* 32
5,900 Grand Casinos, Inc.* 56
6,100 Gtech Holdings Corp.* 153
900 Harveys Casinos Resorts 24
2,900 Hollywood Park, Inc.* 28
2,700 International Speedway Corp.* 96
900 Penske Motorsports, Inc.* 21
9,200 Premier Parks, Inc.* 250
600 Primadonna Resorts, Inc.* 5
2,500 RIO Hotel And Casino, Inc.* 39
1,500 Scientific Games Holdings, Inc.* 29
3,400 SFX Entertainment, Inc.* 170
500 Silverleaf Resorts, Inc.* 6
1,800 Speedway Motorsports, Inc.* 51
3,100 Station Casinos, Inc.* 26
1,300 Steinway Musical Instruments* 30
4,000 Sunterra Corp.* 47
500 Trendwest Resorts, Inc.* 7
3,900 Vail Resorts, Inc.* 98
900 Vistana, Inc.* 13
--------
1,453
--------
ENVIRONMENTAL CONTROL--0.6%
27,100 Aqua Alliance, Inc., Class A* 54
5,100 Calgon Carbon Corp. 37
900 Casella Waste Systems, Inc.* 28
7,000 Catalytica, Inc.* 126
4,400 Eastern Environmental Services* 96
2,200 Imco Recycling, Inc. 33
2,400 Ionics, Inc.* 75
3,900 Metal Management, Inc.* 12
500 Mine Safety Appliances Co. 33
17,220 Safety Kleen Corp.* 59
3,300 Superior Services, Inc.* 61
3,300 Syntroleum Corp.* 28
4,197 Tetra Tech, Inc.* 88
750 Thermo Ecotek Corp.* 8
400 Waste Industries, Inc.* 7
18,400 Wastemasters, Inc.* 10
--------
755
--------
FOOD--1.3%
2,600 American Italian Pasta Co.* 66
5,500 Chiquita Brands International 62
5,200 Corn Products International, Inc. 146
3,100 Dreyer's Grand Ice Cream, Inc. 42
6,300 Earthgrains Co. 202
5,600 Fleming Companies, Inc.* 56
2,600 Great Atlantic & Pacific Tea Co. 71
2,000 Hain Food Group, Inc.* 41
2,200 Imperial Holly Corp. 19
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- --------------------------------------------------------
<C> <S> <C>
1,400 Ingles Markets, Inc. $ 17
2,500 International Multifoods Corp. 64
3,300 Lance, Inc. 65
2,000 Michael Foods, Inc. 50
1,850 Performance Food Group Co.* 45
499 Pilgrims Pride Corp.* 12
4,800 RalCorp. Holdings, Inc.* 84
7,000 Richfood Holdings, Inc. 130
1,100 Riviana Foods, Inc. 22
100 Seaboard Corp. 43
4,900 Smithfield Foods, Inc.* 130
3,800 Smucker (J.M.) Co. 88
600 United Natural Foods, Inc.* 15
7,500 Universal Foods Corp. 186
3,700 Vlasic Foods International* 80
1,600 Wild Oats Markets, Inc.* 46
2,300 Zapata Corp. 18
--------
1,800
--------
FOREST PRODUCTS AND PAPER--0.5%
3,500 Buckeye Technologies, Inc.* 68
3,700 Caraustar Industries, Inc. 98
2,800 Chesapeake Corp.* 97
3,700 Glatfelter (P.H.) Co. 48
4,300 Potlatch Corp. 163
1,770 Rock-Tenn Co. 29
2,100 Schweitzer-Mauduit International 38
8,491 Wausau-Mosinee Paper Corp. 143
--------
684
--------
GAS--1.7%
8,400 AGL Resources, Inc. 181
4,450 Atmos Energy Corp. 136
2,000 Bay State Gas 79
1,300 Colonial Gas Co. 45
1,500 Connecticut Energy Corp. 42
3,000 Eastern Enterprises 122
3,800 Energen Corp. 68
4,433 Indiana Energy, Inc. 100
2,600 Laclede Gas Co. 65
2,600 New Jersey Resources 101
1,450 North Carolina Natural Gas 47
3,600 Northwest Natural Gas Co. 102
1,900 NUI Corp. 46
4,600 Oneok, Inc. 160
1,500 Pennsylvania Enterprises, Inc. 37
5,200 Peoples Energy Corp. 196
4,476 Piedmont Natural Gas Co. 157
2,950 Public Service Co. of North Carolina 72
2,087 SEMCO Energy, Inc. 34
1,120 South Jersey Industries 29
2,619 Southern Union Co.* 53
4,400 Southwest Gas Corp. 105
3,600 Southwestern Energy Co. 27
4,800 UGI Corp. 117
6,400 Washington Gas Light Co. 163
</TABLE>
See accompanying notes to financial statements.
77
<PAGE>
Northern Institutional Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
November 30, 1998
(All amounts in thousands, except shares)
<TABLE>
<CAPTION>
Shares Description Value
- ------------------------------------------------------------
SMALL COMPANY INDEX PORTFOLIO--CONTINUED
<C> <S> <C>
GAS--Continued
5,500 Wicor, Inc. $ 120
1,550 Yankee Energy Systems, Inc. 45
--------
2,449
--------
HAND AND MACHINE TOOLS--0.6%
5,875 Applied Power, Inc.* 209
4,893 Baldor Electric 98
668 Franklin Electric Co., Inc. 44
1,400 Hardinger, Inc. 27
7,200 Lincoln Electric Holdings, Inc. 169
5,700 Milacron, Inc. 115
3,100 Regal Beloit 78
1,800 SPX Corp.* 104
1,000 Starrett (L.S.) Co. 31
--------
875
--------
HEALTH CARE--3.1%
3,200 Acuson Corp.* 45
2,900 Adac Laboratories* 75
6,600 Alaris Medical, Inc.* 35
2,300 Alternative Living Services* 62
1,300 American Homepatient, Inc.* 3
2,500 American Retirement Corp.* 39
6,100 Apria Healthcare Group, Inc.* 43
2,000 Arrow International, Inc. 57
2,200 Assisted Living Concepts, Inc.* 28
4,500 Ballard Medical Products 98
1,400 Brookdale Living Communities* 24
1,600 Capital Senior Living Corp.* 20
1,400 Carematrix Corp.* 39
1,700 Centennial HealthCare Corp.* 26
800 Closure Medical Corp.* 18
2,800 Columbia Laboratories, Inc.* 11
2,250 Conmed Corp.* 61
2,200 Cooper Companies, Inc.* 47
8,550 Covance, Inc.* 214
8,600 Coventry Health Care, Inc.* 64
1,900 Curative Health Services, Inc.* 55
2,300 Cytyc Corp.* 46
1,900 Datascope Corp.* 42
1,700 Diagnostic Products Corp. 44
4,900 Express Scripts, Inc.* 270
5,200 Genesis Health Ventures* 50
3,400 Haemonetics Corp.* 77
2,700 Hanger Orthopedic Group, Inc.* 65
3,300 Henry Schein, Inc.* 117
2,000 Hologic, Inc.* 26
5,200 Idexx Laboratories, Inc.* 135
1,600 Igen International, Inc.* 43
1,200 Impath, Inc.* 46
3,500 Invacare Corp.* 84
5,700 Laboratory Corp. of America* 7
1,571 Life Technologies, Inc. 58
1,200 Lifecore Biomedical, Inc.* 10
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- ---------------------------------------------------
<C> <S> <C>
330 LTC Healthcare, Inc. $ 1
4,600 Magellan Health Services* 43
10,427 Mariner Post-Acute Network* 45
2,100 Maxxim Medical, Inc.* 57
135 MEDIQ, Inc. 1
3,464 Mentor Corp. 64
7,000 MID Atlantic Medical Services* 62
1,100 Minimed, Inc.* 78
1,100 National Healthcare Corp.* 17
9,200 Novacare, Inc.* 29
1,200 Novoste Corp.* 20
4,600 Oakley, Inc.* 45
1,400 Ocular Sciences, Inc.* 32
1,800 OEC Medical, Inc.* 50
11,800 Oxford Health Plans* 131
1,000 Perclose, Inc.* 27
1,200 Province Healthcare Co.* 38
10,325 PSS World Medical, Inc.* 214
4,400 Quest Diagnostics, Inc.* 79
5,950 Renal Care Group, Inc.* 160
1,750 Res-Care, Inc.* 42
2,100 Resmed, Inc.* 72
4,055 Respironics, Inc.* 77
1,600 Sabratek Corp.* 27
3,500 Sierra Health Services* 80
3,600 Sola International, Inc.* 57
7,880 Sun Healthcare Group, Inc.* 41
2,100 Sunrise Assisted Living, Inc.* 91
2,900 Sunrise Medical, Inc.* 37
2,800 Techne Corp.* 53
600 Thermo Bioanalysis Corp.* 6
2,700 Thermo Cardiosystems, Inc.* 31
1,600 Thermolase Corp.* 8
1,350 Thermotrex Corp.* 14
800 Trex Medical Corp.* 8
1,900 United Wisconsin Services, Inc. 14
8,800 Vencor, Inc.* 40
2,000 Ventana Medical Systems* 43
2,000 Visx, Inc.* 146
700 Vital Signs, Inc. 12
1,600 Wesley Jessen Visioncare* 38
1,823 West Co., Inc. 55
1,200 Xomed Surgical Products, Inc.* 53
--------
4,422
--------
HOLDING COMPANIES--DIVERSIFIED--0.1%
2,320 Triarc Companies, Inc.* 37
6,000 Walter Industries, Inc.* 86
--------
123
--------
HOME BUILDERS--1.0%
1,812 American Homestar Corp.* 30
2,900 Cavalier Homes, Inc. 31
6,004 Champion Enterprises, Inc.* 134
2,600 Coachmen Industries, Inc. 59
1,100 Crossmann Cmntys, Inc.* 28
</TABLE>
See accompanying notes to financial statements.
78
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Description Value
- ------------------------------------------------------
<C> <S> <C>
5,158 DR Horton, Inc. $ 97
6,700 Fairfield Communities, Inc.* 72
5,800 Kaufman & Broad Home Corp. 146
2,700 MDC Holdings, Inc. 50
1,200 Monaco Coach Corp.* 36
1,500 National RV Holdings, Inc.* 40
1,400 NVR L.P.* 55
6,850 Oakwood Homes* 102
2,820 Palm Harbor Homes, Inc.* 73
3,600 Pulte Corp. 92
2,200 Ryland Group, Inc. 58
1,100 Skyline Corp. 36
3,700 Standard-Pacific Corp. 36
983 Thor Industries, Inc. 23
3,500 Toll Brothers, Inc.* 85
1,979 U S Home Corp.* 63
2,100 Webb (DEL E.) Corp. 56
1,900 Winnebago Industries 23
--------
1,425
--------
HOME FURNISHINGS--0.4%
1,900 Bassett Furniture Industries 48
1,500 Bush Industries 25
4,800 Fedders Corp. 27
2,710 Harman International 116
5,300 Kimball International 102
7,800 La-Z-Boy, Inc. 131
400 Meadowcraft, Inc.* 4
2,400 O'Sullivan Industries Holdings* 24
900 Parkervision, Inc.* 22
2,200 Polycom, Inc.* 39
3,200 Windmere-Durable Holdings* 20
--------
558
--------
HOUSEHOLD PRODUCTS AND WARES--0.6%
2,350 American Business Products, Inc. 52
3,080 Brady Corp. 79
4,300 Central Garden and Pet Co.* 69
2,700 Church & Dwight, Inc. 93
900 CSS Industries, Inc.* 27
1,100 DAY Runner, Inc.* 24
1,200 Fossil, Inc.* 33
2,400 Gibson Greetings, Inc.* 26
4,600 Harland (John H.) Co. 70
1,300 Hunt Corp. 18
5,400 Jostens, Inc. 127
1,900 New England Business Service, Inc. 61
1,600 Russ Berrie & Co., Inc. 36
1,900 Standard Register Co. 56
6,200 Wallace Computer Services, Inc. 139
--------
910
--------
HOUSEWARES--0.2%
2,400 Enesco Group, Inc. 58
2,600 Libbey, Inc. 80
7,757 Metromedia International Group * 34
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- ----------------------------------------------------------
<C> <S> <C>
1,090 Mikasa, Inc. $ 12
1,000 National Presto Industries, Inc. 41
2,050 Oneida Ltd. 37
1,900 Toro Co. 50
--------
312
--------
INSURANCE--3.3%
1,700 Acceptance Insurance Companies, Inc.* 33
3,600 Alfa Corp. 79
1,124 American Annuity Group, Inc. 26
2,400 American Heritage Life Investment Corp 59
1,200 American Medical Security Group 17
3,400 Amerin Corp.* 84
2,549 Amerus Life Holdings, Inc. 56
2,600 Argonaut Group, Inc. 65
3,400 ARM Financial Group, Inc. 73
1,700 Baldwin & Lyons, Inc. 36
1,900 Blanch (EW) Holdings, Inc. 76
3,200 Capital Re Corp. 63
1,200 Capitol Transamerica Corp. 21
1,200 Chartwell RE Corp. 33
2,000 Chicago Title Corp. 94
900 Citizens Corp. 30
3,300 Cmac Investment Corp. 159
2,400 CNA Surety Corp.* 35
3,800 Commerce Group, Inc. 130
2,181 Delphi Financial Group* 102
3,600 Enhance Financial Services Group 106
1,500 Executive Risk, Inc.* 81
4,600 FBL Financial Group, Inc. 113
2,783 Fidelity National Financial, Inc. 91
7,250 First American Financial 222
2,600 Foremost Corp. of America 53
1,400 Fpic Insurance Group, Inc.* 51
5,134 Frontier Insurance Group, Inc. 73
2,500 Gallagher, Arthur J. & Co. 116
1,400 Guarantee Life Companies, Inc. 26
1,700 Harleysville Group, Inc. 37
5,500 HCC Insurance Holdings, Inc. 102
1,900 Highlands Insurance Group* 24
1,800 Hilb, Rogal & Hamilton Co. 34
4,350 HSB Group, Inc. 180
500 Kansas City Life Insurance Co. 41
2,200 Landamerica Financial Group, Inc. 135
1,600 Liberty Corp. 78
1,700 Life RE Corp. 160
3,100 Life USA Holding, Inc. 40
600 Markel Corp.* 100
700 Meadowbrook Insurance Group 11
3,175 Medical Assurance, Inc.* 96
600 Midland Co. 15
2,400 MMI Companies, Inc. 39
2,200 NAC Re Corp. 105
300 National Western Life Insurance* 36
500 Nymagic, Inc. 11
2,200 Pennsylvania Manufacturers Corp. 42
</TABLE>
See accompanying notes to financial statements.
79
<PAGE>
Northern Institutional Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
November 30, 1998
(All amounts in thousands, except shares)
<TABLE>
<CAPTION>
Shares Description Value
- ------------------------------------------------------------
SMALL COMPANY INDEX PORTFOLIO--CONTINUED
<C> <S> <C>
INSURANCE--Continued
900 Penn Treaty American Corp.* $ 25
2,900 PennCorp. Financial Group, Inc.* 3
900 Philadelphia Consolidated Holdings* 19
1,525 POE & Brown, Inc. 53
3,300 Presidential Life Corp. 59
1,751 Pxre Corp. 39
3,700 Reinsurance Group of America 242
1,900 Risk Capital Holdings, Inc.* 41
1,181 RLI Corp. 43
1,800 Scpie Holdings, Inc. 55
4,300 Selective Insurance Group 81
1,900 State Auto Financial Corp. 23
1,000 Stewart Information Services 49
6,300 TIG Holdings, Inc. 89
1,650 Trenwick Group, Inc. 52
2,000 Triad Guaranty, Inc.* 45
5,500 UICI* 109
1,050 United Fire & Casualty Co. 39
1,500 Vesta Insurance Group, Inc. 9
3,300 W.R. Berkley Corp. 111
1,400 Zenith National Insurance Corp. 34
--------
4,709
--------
INVESTMENT COMPANIES--0.0%
700 PEC Israel Economic Corp.* 17
--------
IRON AND STEEL--0.9%
6,700 AK Steel Holding Corp. 129
2,700 Arch Coal, Inc. 52
13,300 Armco, Inc.* 52
19,006 Bethlehem Steel Corp.* 157
4,100 Birmingham Steel Corp. 20
2,900 Carpenter Technology 102
1,600 Citation Corp.* 22
1,700 Cleveland-Cliffs, Inc. 65
900 Gibraltar Steel Corp.* 18
7,200 Inland Steel Industries, Inc. 132
1,700 J & L Specialty Steel, Inc. 11
3,300 Lone Star Technologies* 32
14,600 LTV Corp. 80
3,100 National Steel Corp. 23
3,200 Oregon Steel Mills, Inc. 41
1,550 Reliance Steel & Aluminum 47
1,600 Roanoke Electric Steel Corp. 23
1,000 Rouge Industries, Inc. 8
600 Schnitzer Steel Industries, Inc. 11
600 Shiloh Industries, Inc.* 9
5,200 Steel Dynamics, Inc.* 71
3,100 Texas Industries, Inc. 90
2,400 WHX Corp.* 25
--------
1,220
--------
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- --------------------------------------------------------
<C> <S> <C>
LEISURE TIME--0.3%
500 Ambassadors International, Inc.* $ 9
1,000 American Classic Voyager* 15
2,200 American Skiing Co.* 20
3,500 Bally Total Fitness Holding* 83
1,400 Coleman Co., Inc.* 13
2,850 Family Golf Centers, Inc.* 59
1,617 K2, Inc. 18
1,800 North Face, Inc.* 23
1,500 Pegasus Systems, Inc.* 33
3,400 Polaris Industries, Inc. 119
1,200 Travel Services International, Inc.* 27
--------
419
--------
LODGING--0.3%
5,600 Choice Hotels International, Inc.* 64
10,500 Extended Stay America, Inc.* 105
3,800 Florida Panthers Holdings* 43
2,600 Homestead Village, Inc.* 17
3,359 Marcus Corp. 51
7,700 Prime Hospitality Corp.* 67
4,100 RED Roof Inns, Inc.* 70
2,500 Servico, Inc.* 16
1,300 Suburban Lodges of America* 10
--------
443
--------
MACHINERY--CONSTRUCTION AND MINING--0.3%
1,100 Astec Industries, Inc.* 57
1,850 Commercial Intertech Corp. 29
3,200 Global Industries Technologies* 27
5,900 Global Industries Technologies* 97
2,500 Kuhlman Corp. 70
2,525 Manitowoc Co. 100
2,600 Terex Corp.* 73
--------
453
--------
MACHINERY--DIVERSIFIED--1.2%
900 Advanced Energy Industries* 16
2,623 Albany International Corp. 50
1,200 Allied Products 9
3,200 Applied Industrial Technology, Inc. 45
3,500 Briggs & Stratton 177
2,450 Chart Industries, Inc. 19
5,000 Cognex Corp.* 83
1,700 Columbus Mckinnon Corp. 31
1,300 DT Industries, Inc.* 24
2,500 Esterline Technologies Corp.* 52
2,050 Gardner Denver Machinery, Inc.* 33
2,900 Gerber Scientific, Inc. 73
1,300 Gleason Corp. 25
2,145 Graco, Inc. 60
2,800 Helix Technology Corp. 34
4,325 Idex Corp. 117
6,000 Imation Corp.* 98
2,600 Integrated Process Equipment* 27
1,800 Iteq, Inc.* 4
</TABLE>
See accompanying notes to financial statements.
80
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Description Value
- --------------------------------------------------------
<C> <S> <C>
1,850 Lindsay Manufacturing Co. $ 28
3,900 Magnetek, Inc.* 44
2,600 Motivepower Industries, Inc.* 79
1,000 Nacco Industries 87
2,000 Nordson Corp. 96
1,500 Omniquip International, Inc.* 20
4,000 Presstek, Inc.* 31
2,500 PRI Automation, Inc.* 60
1,148 Robbins & Myers, Inc. 23
1,100 Sauer, Inc. 10
1,700 Specialty Equipment Companies, Inc.* 40
2,000 Speedfam International, Inc.* 30
4,100 Stewart & Stevenson Services 41
1,400 Tennant Co. 48
1,200 Thermo Fibertek, Inc.* 7
5,300 Unova, Inc.* 90
--------
1,711
--------
MEDIA--2.0%
1,100 Entertainment, Inc. 8
2,200 Ackerley Group, Inc.* 39
2,500 Adelphia Communications* 87
6,200 American Media, Inc.* 29
4,300 Banta Corp. 114
5,400 Bowne & Co., Inc. 90
1,600 CD Radio, Inc.* 61
4,600 Century Communications* 112
1,600 Consolidated Graphics, Inc.* 92
1,300 COX Radio, Inc.* 50
1,700 Emmis Communications Corp.* 59
3,000 Gaylord Entertainment Co.* 88
700 Gray Communication System* 12
5,600 Hollinger International, Inc. 72
3,600 Houghton Mifflin Co. 151
2,100 Jones Intercable, Inc.* 65
1,600 Journal Register Co.* 26
6,500 LEE Enterprises 182
4,900 Mail-Well, Inc.* 63
3,275 Mcclatchy Co. 108
3,400 Media General, Inc. 161
2,008 Merrill Corp. 34
1,100 Metro Networks, Inc.* 42
1,200 On Command Corp.* 10
2,700 Paxson Communications Corp.* 20
1,200 Pegasus Communications Corp.* 20
2,600 Petersen Cos., Inc.* 62
2,500 Playboy Enterprises* 39
1,900 Scholastic Corp.* 90
3,400 Spelling Entertainment Group* 25
7,400 TCI Satellite Entmnt Group* 8
5,800 United International Holdings, Inc.* 98
600 United Television, Inc. 66
5,400 Valassis Communications, Inc.* 232
300 Value Line, Inc. 12
3,300 Westwood One, Inc.* 87
3,800 Wiley (John) & Sons 131
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- ---------------------------------------------------
<C> <S> <C>
5,600 World Color Press, Inc.* $ 167
1,400 Young Broadcasting Corp.* 50
--------
2,862
--------
METAL FABRICATE AND HARDWARE--0.6%
1,656 Castle (A.M.) & Co. 32
2,100 Chase Industries, Inc.* 25
1,966 Commercial Metals Co. 50
2,800 Intermet Corp. 38
4,800 Kaydon Corp. 170
1,800 Ladish Co., Inc.* 18
800 Lawson Products 18
1,800 Maverick Tube Corp.* 10
4,100 Metals USA, Inc.* 38
5,200 Mueller Industries, Inc.* 119
2,500 NS Group, Inc.* 14
3,600 Precision Castparts Corp. 159
2,100 Quanex Corp. 38
2,800 ROHN Industries, Inc. 8
600 Ryerson Tull, Inc.* 7
800 Shaw Group, Inc. (The)* 7
500 Special Metals Corp.* 5
2,900 Valmont Industries 47
2,100 Wolverine Tube, Inc. 47
2,900 Wyman-Gordon Co.* 45
--------
895
--------
METALS--DIVERSIFIED--0.4%
5,400 Asarco, Inc. 105
2,400 Brush Wellman, Inc. 39
1,800 Century Aluminum Co. 15
1,400 Commonwealth Industries, Inc. 13
8,100 Hecla Mining Co.* 34
4,300 Kaiser Aluminum Corp.* 28
500 Maxxam, Inc.* 24
2,100 RTI International Metals, Inc.* 32
3,700 Southern Peru Limited 43
3,000 Stillwater Mining Co.* 110
3,200 Titanium Metals Corp. 32
500 Tremont Corp. 18
--------
493
--------
MINING--0.2%
3,500 Amcol International Corp. 37
33,700 Battle Mountain Gold Co.* 158
4,517 Getchell Gold Corp.* 74
--------
269
--------
MISCELLANEOUS MANUFACTURER--1.5%
2,100 ACX Technologies, Inc.* 27
4,500 Aptargroup, Inc. 126
3,050 Arctic Cat, Inc. 32
12,600 Aura Systems, Inc.* 17
3,600 Blount International, Inc. 83
3,550 Clarcor, Inc. 67
1,500 CPI Corp. 32
</TABLE>
See accompanying notes to financial statements.
81
<PAGE>
Northern Institutional Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
November 30, 1998
(All amounts in thousands, except shares)
<TABLE>
<CAPTION>
Shares Description Value
- ------------------------------------------------------------
SMALL COMPANY INDEX PORTFOLIO--CONTINUED
<C> <S> <C>
MISCELLANEOUS MANUFACTURER--Continued
2,350 Cuno, Inc.* $ 35
3,400 Dexter Corp. 109
5,600 Donaldson Co., Inc. 112
6,700 Federal Signal Corp. 164
2,100 Foamex International, Inc.* 24
2,700 Furon Co. 46
711 General Electric Co. 64
4,500 Griffon Corp.* 43
2,100 Heska Corp.* 13
2,200 Hexcel Corp.* 20
2,500 Justin Industries 32
2,300 Lydall, Inc.* 29
8,000 Mark IV Industries, Inc. 135
5,400 Mascotech, Inc. 87
2,400 Matthews International Corp. 72
2,694 Myers Industries, Inc. 61
300 NCH Corp. 17
3,900 Polymer Group, Inc.* 41
4,600 Roper Industries, Inc. 85
1,200 Samsonite Corp.* 8
2,700 Scott Technologies, Inc.* 42
2,100 Smith (A.O.) Corp. 52
1,528 SPS Technologies, Inc.* 87
1,700 Standex International Corp. 40
2,900 Sturm Ruger & Co., Inc. 37
2,700 Synetic, Inc.* 114
3,000 Tredegar Industries, Inc. 70
2,500 Westinghouse Air Brake Co.* 55
1,600 Zoltek Cos., Inc.* 17
--------
2,095
--------
OFFICE FURNISHINGS--0.1%
2,100 Knoll, Inc.* 57
660 Virco Manufacturing 14
--------
71
--------
OFFICE AND BUSINESS EQUIPMENT--0.0%
900 General Binding Corp. 34
--------
OIL AND GAS PRODUCERS--1.5%
1,500 Atwood Oceanics, Inc.* 28
4,640 Barrett Resources Corp.* 113
800 Belco Oil & Gas Corp.* 5
4,300 Benton Oil & Gas Co.* 16
2,700 Berry Petroleum 35
3,900 Brown (Tom), Inc. 39
3,300 Cabot Oil & Gas Corp. 51
7,154 Chesapeake Energy Corp. 10
2,300 Cliffs Drilling Co. 36
2,900 Comstock Resources, Inc.* 11
5,700 Cross Timbers Oil Co. 65
3,300 Devon Energy Corp. 109
18,600 Enserch Exploration, Inc. 66
1,900 Forcenergy, Inc.* 8
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- -------------------------------------------------------
<C> <S> <C>
4,900 Forest Oil Corp.* $ 42
4,100 Frontier Oil Corp.* 23
21,400 Grey Wolf, Inc.* 21
19,600 Harken Energy Corp.* 55
7,400 Helmerich & Payne 128
678 Holly Corp. 11
1,200 Houston Exploration Co.* 21
2,500 HS Resources, Inc.* 22
3,700 KCS Energy, Inc.* 15
18,400 Kelley Oil & Gas Corp.* 17
2,856 Louis Dreyfus Natural Gas* 37
7,800 Marine Drilling Co., Inc.* 68
4,776 Meridian Resource Corp.* 19
3,000 Mitchell Energy & Development 39
4,700 Newfield Exploration Co.* 92
2,900 Nuevo Energy Co.* 43
9,100 Parker Drilling Co.* 34
4,600 Patterson Energy, Inc.* 22
800 Penn Virginia Corp. 17
2,500 Plains Resources, Inc.* 44
5,500 Pogo Producing Co. 64
7,400 Pride International, Inc.* 56
5,300 Quaker State Corp. 76
2,600 Range Resources Corp. 11
800 Rutherford-Moran Oil Corp.* 2
15,000 Santa Fe Energy Resources* 115
9,200 Seagull Energy Corp.* 75
4,900 Snyder Oil Corp. 63
1,600 St. Mary Land & Exploration 30
2,000 Stone Energy Corp.* 60
2,220 Swift Energy Co.* 21
4,700 Tesoro Petroleum Corp.* 63
5,300 Titan Exploration, Inc.* 39
1,400 Transtexas Gas Corp.* 3
5,400 Vintage Petroleum, Inc. 56
2,030 Wd-40 Co. 63
--------
2,159
--------
OIL AND GAS SERVICES--0.5%
600 CAL Dive International, Inc.* 10
400 Carbo Ceramics, Inc. 8
2,100 Daniel Industries 23
1,800 Friede Goldman International, Inc.* 23
900 Gulf Island Fabrication, Inc.* 7
4,200 Hanover Compressor Co.* 95
5,900 Input/Output, Inc.* 48
1,900 IRI International Corp.* 8
2,700 KEY Energy Group* 17
1,000 Lufkin Industries, Inc. 20
9,860 Newpark Resources* 73
3,400 Oceaneering International, Inc.* 42
500 Omni Energy Services Corp.* 5
3,100 Pool Energy Services Co.* 35
2,000 RPC, Inc. 16
1,900 Seacor Smit, Inc.* 91
3,300 Seitel, Inc.* 44
</TABLE>
See accompanying notes to financial statements.
82
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Description Value
- ---------------------------------------------------
<C> <S> <C>
2,600 Superior Energy Services* $ 8
6,700 Tuboscope, Inc.* 56
1,500 UTI Energy Corp.* 13
3,100 Veritas DGC, Inc.* 45
--------
687
--------
PACKAGING AND CONTAINERS--0.6%
4,500 Ball Corp. 192
900 Bway Corp.* 15
3,900 Earthshell Corp.* 53
5,700 First Brands Corp. 213
7,500 Gaylord Container Corp. 39
2,100 Greif Brothers Corp. 68
2,700 Ivex Packaging Corp.* 53
7,600 Longview Fibre Co. 86
3,150 Shorewood Packaging Corp.* 47
1,700 Silgan Holdings, Inc.* 47
--------
813
--------
PHARMACEUTICALS--2.9%
1,200 Advance Paradigm, Inc.* 38
4,600 Agouron Pharmaceuticals, Inc.* 201
1,500 Algos Pharmaceuticals Corp.* 41
2,800 Alkermes, Inc.* 51
76 Alpha 1 Biomedicals, Inc. 0
2,500 Alpharma, Inc., Class A 90
3,100 Amerisource Health Corp.* 198
1,000 Andrx Corp.* 40
4,400 AxyS Pharmaceuticals, Inc.* 25
1,300 Barr Laboratories, Inc.* 55
2,333 Bindley Western Industries* 90
1,000 Biomatrix, Inc.* 49
2,080 Block Drug Co. 78
3,200 Carter-Wallace, Inc. 57
3,900 Cephalon, Inc.* 29
1,600 Chirex, Inc.* 29
3,500 COR Therapeutics, Inc.* 41
2,000 Coulter Pharmaceutical, Inc.* 57
6,800 Dura Pharmaceuticals, Inc.* 88
2,700 Fuisz Technologies Ltd.* 33
1,900 Geltex Pharmaceuticals, Inc.* 45
11,600 Gensia Sicor, Inc.* 54
4,500 Gilead Sciences, Inc.* 140
2,400 Guilford Pharmaceuticals, Inc.* 34
1,766 Herbalife International, Inc. 21
3,600 Imclone Systems* 38
3,400 Immune Response Corp.* 44
3,900 Isis Pharmaceuticals, Inc.* 44
14,400 Ivax Corp.* 137
3,400 Jones Pharma, Inc. 122
1,950 KV Pharmaceutical Co.* 42
5,458 Ligand Pharmaceuticals, Inc.* 54
2,700 Macrochem Corp.* 21
2,700 Medicis Pharmaceutical* 170
3,400 Medimmune, Inc.* 227
900 Miravant Medical Technologies* 14
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- -----------------------------------------------------
<C> <S> <C>
7,800 Nbty, Inc.* $ 48
2,000 NCS Healthcare, Inc.* 41
4,200 Nexstar Pharmaceuticals, Inc.* 42
1,000 Omega Protein Corp.* 9
2,400 Pathogensis Corp.* 115
3,150 Patterson Dental Co.* 131
9,400 Perrigo Co.* 79
1,800 Pharmacyclics, Inc.* 31
10,000 PharMerica, Inc.* 41
1,800 Priority Healthcare Corp.* 66
3,700 Roberts Pharmaceutical Corp.* 91
2,400 Sangstat Medical Corp.* 58
600 Schein Pharmaceutical, Inc.* 8
5,600 Scios, Inc.* 42
3,900 Sepracor, Inc.* 324
4,600 Sequus Pharmaceuticals, Inc.* 91
1,400 Supergen, Inc.* 9
3,800 Theragenics Corp.* 52
2,800 Triangle Pharmaceuticals, Inc.* 31
3,200 Twinlab Corp.* 53
3,600 US Bioscience, Inc.* 27
3,700 Vertex Pharmaceuticals, Inc.* 88
3,000 Veterinary Centers of America* 55
1,400 Viropharma, Inc.* 16
4,000 Vivus, Inc.* 12
1,100 Weider Nutrition International 7
5,100 Zila Pharmaceuticals, Inc.* 38
1,700 Zonagen, Inc.* 33
--------
4,135
--------
PIPELINES--0.2%
600 Aquila Gas Pipeline Corp.* 5
5,400 Equitable Resources, Inc. 159
3,200 Transmontaigne, Inc.* 48
3,100 Western Gas Resources, Inc. 29
--------
241
--------
REAL ESTATE--0.5%
700 Avatar Holdings, Inc.* 11
1,800 Castle & Cooke, Inc.* 28
1,900 CB Richard Ellis Services, Inc.* 34
2,000 Forest City Enterprises, Class A 49
962 Getty Realty Corp. 13
2,900 Grubb & Ellis Co.* 24
1,933 Insignia Financial Group, Inc.* 26
2,400 Lasalle Partners, Inc. 68
3,800 LNR Property Corp.* 74
265 Merry Land Properties, Inc. 1
344 Reckson Services Industries, Inc. 1
5,900 Security Capital Group, Inc.* 87
4,200 Trammell Crow Co.* 101
8,000 Ventas, Inc.* 96
2,500 Wellsford Real Properties, Inc.* 23
--------
636
--------
</TABLE>
See accompanying notes to financial statements.
83
<PAGE>
Northern Institutional Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
November 30, 1998
(All amounts in thousands, except shares)
<TABLE>
<CAPTION>
Shares Description Value
- ------------------------------------------------------------
SMALL COMPANY INDEX PORTFOLIO--CONTINUED
<C> <S> <C>
REITS--6.1%
470 Alexander's, Inc.* $ 37
1,600 Alexandria Real Estate Equities 49
3,400 American Health Properties 77
2,000 Amli Residential Properties 43
2,600 Anthracite Capital, Inc. 19
759 Apartment Investment & Management Co. 30
200 Archstone Communities Trust 4
2,500 Associated Estates Realty 32
3,300 Bedford Property Investors 59
5,400 Berkshire Realty Co. 51
2,500 Boykin Lodging Co. 33
3,503 Bradley Real Estate Trust 72
4,900 Brandywine Realty Trust 88
6,424 Bre Properties, Inc., Class A 155
4,700 Burnham Pacific Property, Inc. 61
2,700 Cabot Industrial Trust 57
6,533 Camden Property Trust 168
3,100 Capital Automotive 41
8,975 Capstead Mortgage Corp.* 30
3,300 CBL & Associates Properties 83
3,200 CCA Prison Realty Trust 78
2,600 Centerpoint Properties Corp. 88
2,800 Centertrust Retail Properties 33
3,100 Chateau Communities, Inc. 89
2,300 Chelsea GCA Realty, Inc. 78
3,800 Colonial Properties Trust 103
4,300 Commercial NET Lease Realty 61
6,300 Cornerstone Realty Income Trust 67
3,700 Cousins Properties, Inc. 114
5,900 Criimi MAE, Inc. 22
3,400 Crown American Realty 27
8,400 Developers Divers Realty 162
6,400 Dynex Capital, Inc. 30
2,400 Eastgroup Properties 45
2,000 Entertainment Properties Trust 37
5,300 Equity Inns, Inc. 54
2,100 Essex Property Trust, Inc. 65
5,800 Federal Realty Investment Trust 139
9,433 Felcor Lodging Trust, Inc. 225
5,500 First Industrial Realty Trust 133
4,600 First Union Real Estate 27
7,200 Franchise Finance Corp. of America 177
3,700 Gables Residential Trust 92
5,300 General Growth Propeties 201
4,600 Glenborough Realty Trust, Inc. 98
3,500 Glimcher Realty Trust 59
1,100 Golf Trust of America, Inc. 29
2,600 Great Lakes Reit, Inc. 41
4,500 Health Care Property Investors 142
4,100 Health Care Reit, Inc. 93
6,099 Healthcare Realty Trust, Inc. 140
2,300 Home Properties of NY, Inc. 57
299 Horizon Group Properties, Inc. 1
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- -------------------------------------------------------------
<C> <S> <C>
5,300 Hospitality Properties Trust $ 138
3,000 IMPAC Mortgage Holdings, Inc. 15
5,100 Imperial Credit Commerical Mortgage 50
4,700 Innkeepers USA Trust 52
4,600 IRT Property Co. 46
2,700 Irvine Apartment Communities 72
4,650 JDN Realty Corp. 96
1,900 JP Realty, Inc. 42
4,100 Kilroy Realty Corp. 92
3,900 Koger Equity, Inc. 62
1,700 LaSalle Hotel Properties 23
2,400 Laser Mortgage Management, Inc. 14
2,500 Lexington Corporate Properties 33
4,100 LTC Properties, Inc. 69
4,300 Macerich Co. (The) 114
3,100 Manufactured Home Communities 76
4,600 Meridian Industrial Trust 111
6,742 Meristar Hospitality Corp.* 131
2,000 MGI Properties, Inc. 56
2,800 Mid-America Apartment Communities 68
2,100 Mills Corp. 45
1,800 National Golf Properties, Inc. 52
3,400 National Health Investors 90
6,400 Nationwide Health Properties, Inc. 143
12,880 New Plan Excel Realty Trust 282
2,600 Ocwen Asset Investment Corp. 14
2,918 Omega Healthcare Investors 89
2,600 Pacific Gulf Properties, Inc. 50
1,500 PAN Pacific Retail Properties, Inc. 30
1,600 Parkway Properties, Inc. 48
1,700 Pennsylvania Real Estate Investment Trust 34
5,800 Prentiss Properties Trust 126
309 Price Enterprises, Inc. 2
500 Prime Group Realty Trust 8
6,197 Prime Retail, Inc. 65
3,500 PS Business Parks, Inc. 81
3,900 Realty Income Corp. 98
5,900 Reckson Associates Realty 136
1,800 Redwood Trust, Inc. 26
2,000 Regency Realty Corp. 47
3,300 RFS Hotel Investors, Inc. 47
4,200 Shurgard Storage Centers, Inc. 111
3,500 SL Green Realty Corp. 75
2,500 Charles E. Smith Residential Realty, Inc. 74
1,800 Sovran Self Storage, Inc. 46
2,100 Storage Trust Realty 47
4,100 Storage USA, Inc. 130
3,100 Summit Properties, Inc. 54
2,500 Sun Communities, Inc. 81
5,500 Sunstone Hotel Investors, Inc. 58
700 Tanger Factory Outlet Centers, Inc. 16
5,700 Taubman Centers, Inc. 79
3,200 Thornburg Mortgage Asset Corp. 28
2,500 Tower Reallty Trust, Inc 47
2,300 Town & Country Trust 35
</TABLE>
See accompanying notes to financial statements.
84
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Description Value
- --------------------------------------------------------
<C> <S> <C>
3,300 Trinet Corporate Realty Trust $ 88
15,200 United Dominion Realty Trust 164
1,400 Urban Shopping Centers, Inc. 46
2,500 Walden Residential Props, Inc. 52
5,200 Washington Reit 91
2,900 Weeks Corp. 83
3,900 Weingarten Realty Investment 177
2,500 Western Investment Real Estate Trust 29
4,400 Westfield America, Inc. 77
--------
8,557
--------
RETAIL--4.3%
1,168 99 Cents Only Stores* 50
5,900 Advantica Restaurant Group, Inc.* 38
2,000 American Eagle Outfitters* 120
3,400 Ames Department Stores, Inc.* 81
2,900 Ann Taylor Stores Corp.* 96
3,700 Applebees International, Inc. 76
4,112 Avado Brands, Inc.* 32
1,100 Barnett, Inc.* 14
1,000 Blair Corp. 18
6,100 BOB Evans Farms 148
1,800 Boise Cascade Corp.* 20
2,600 Brown Group, Inc. 47
700 Brylane, Inc.* 11
1,000 Buckle, Inc.* 26
6,740 Buffets, Inc.* 79
2,880 Burlington Coat Factory Warehouses* 42
7,700 Casey's General Stores, Inc.* 107
3,700 Cash America Investments, Inc.* 62
2,400 Cato Corp. 33
1,300 CDnow, Inc.* 31
2,650 CEC Entertainment, Inc.* 79
14,700 Charming Shoppes* 61
2,400 Cheesecake Factory (The)* 62
1,900 Childrens Place* 35
5,950 Claire's Stores, Inc. 101
1,500 Coldwater Creek, Inc.* 18
2,000 Cole National Corp.* 31
2,428 Consolidated Products, Inc.* 50
1,400 Copart, Inc.* 32
15,400 Corporate Express, Inc.* 90
1,300 Cost Plus, Inc.* 43
2,800 CSK Auto, Inc.* 78
1,900 Dave & Buster's, Inc.* 37
300 Delia*s, Inc.* 2
1,300 Discount Auto Parts* 32
2,800 Dress Barn, Inc.* 41
2,500 Duane Reade, Inc.* 100
3,700 Eagle Hardware & Garden* 104
1,900 Elder-Beerman Stores Corp.* 27
6,900 Fingerhut Cos., Inc. 77
2,600 Finish Line* 24
800 Finlay Enterprises* 6
5,100 Foodmaker, Inc.* 99
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- ----------------------------------------------------
<C> <S> <C>
3,600 Footstar, Inc.* $ 88
1,300 Fred's, Inc. 18
1,400 Friedman's, Inc.* 14
1,100 Gadzooks, Inc.* 8
1,800 Garden Ridge Corp.* 14
3,800 Genesco, Inc.* 21
1,300 Genesis Direct, Inc.* 9
440 Genovese Drug Stores 13
2,500 Global Directmail Corp.* 49
2,700 Goody's Family Clothing, Inc.* 30
1,800 Group 1 Automotive, Inc.* 31
2,500 Guitar Center, Inc.* 57
3,500 Gymboree Corp.* 23
3,000 Hancock Fabrics, Inc. 25
4,600 Handleman Co.* 55
17,100 Hanover Direct, Inc.* 42
1,300 Haverty Furniture 25
8,800 Heilig-Meyers Co. 62
3,700 Hollywood Entertainment Corp.* 89
4,200 Host Marriott Services Corp.* 46
3,300 Hughes Supply, Inc. 92
1,400 Ihop Corp.* 56
2,500 Jo-Ann Stores, Inc.* 39
3,550 Just For Feet, Inc.* 80
700 K & G Men's Center, Inc.* 7
1,100 Kenneth Cole Productions, Inc.* 20
3,800 Landry's Seafood Restaurant* 31
2,100 Land's End, Inc.* 47
5,700 Linens 'N Things, Inc.* 175
5,700 Lone Star Steakhouse & Saloon* 43
4,500 Longs Drug Stores, Inc. 160
3,400 Luby's Cafeterias, Inc. 54
2,800 Maxim Group, Inc. (The)* 55
3,012 Men's Wearhouse, Inc.* 76
3,700 Michaels Stores, Inc.* 67
5,100 Micro Warehouse, Inc.* 140
1,300 Movado Group, Inc. 26
5,200 Musicland Stores Corp.* 88
1,700 N2K, Inc.* 28
1,100 NPC International, Inc.* 13
500 Onsale, Inc.* 31
2,000 O'Reilly Automotive, Inc.* 91
3,075 Pacific Sunwear of California* 46
2,950 Papa John's International, Inc.* 124
1,200 Party City Corp.* 20
3,050 Petco Animal Supplies, Inc.* 31
17,000 Petsmart, Inc.* 146
500 PJ America, Inc.* 10
5,400 Planet Hollywood International* 16
3,450 Rainforest Cafe, Inc.* 24
2,600 Regis Corp. 87
4,200 Ruby Tuesday, Inc.* 78
6,100 Ryan's Family STK Houses, Inc.* 69
1,950 Sbarro, Inc.* 51
3,800 Shopko Stores, Inc.* 123
</TABLE>
See accompanying notes to financial statements.
85
<PAGE>
Northern Institutional Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
November 30, 1998
(All amounts in thousands, except shares)
<TABLE>
<CAPTION>
Shares Description Value
- ------------------------------------------------------------
SMALL COMPANY INDEX PORTFOLIO--CONTINUED
<C> <S> <C>
RETAIL--Continued
1,200 Smart & Final, Inc. $ 13
2,750 Sonic Corp.* 54
21,000 Southland Corp.* 43
3,400 Spiegel, Inc.* 13
4,700 Spiegel, Inc. 31
3,900 Stage Stores, Inc.* 45
4,000 Stein Mart, Inc.* 34
6,200 Sunglass HUT International, Inc.* 37
1,000 Syms Corp.* 10
1,700 Talbots, Inc. 43
1,500 Tcby Enterprises, Inc. 12
2,250 Trans World Entertainment 52
2,300 United Auto Group, Inc.* 31
1,400 Urban Outfitters, Inc.* 20
1,700 Value City Dept Stores, Inc.* 17
1,400 West Marine, Inc.* 16
1,600 Wet Seal, Inc.* 44
1,600 Wilmar Industries, Inc.* 28
5,400 Zale Corp.* 155
--------
6,021
--------
SAVINGS AND LOANS--1.9%
1,980 Albank Financial Corp. 134
2,600 Anchor BanCorp. Wisconsin, Inc. 52
900 Andover BanCorp., Inc. 29
5,700 Arcadia Financial Ltd.* 20
2,300 Bank Plus Corp.* 10
5,400 Bankatlantic BanCorp. Inc 43
1,800 Bankunited Financial Corp.* 15
3,000 Bay View Capital Corp. 63
2,000 Brookline BanCorp., Inc. 24
1,200 CFSB BanCorp., Inc. 28
8,894 Commercial Federal Corp. 204
2,254 Commonwealth BanCorp., Inc. 34
1,300 D & N Financial Corp. 30
1,700 Dime Community Bancshares 46
3,006 Downey Financial Corp. 78
2,300 First Federal Capital Corp. 38
2,000 First Financial Holdings, Inc. 38
1,357 First Indiana Corp. 26
1,600 First Liberty Financial Corp. 35
4,695 First Source BanCorp., Inc. 38
1,720 First Washington BanCorp., Inc. 36
2,900 Firstfed Financial Corp.* 51
700 Flagstar BanCorp., Inc. 17
2,106 Harbor Florida Bancshares, Inc. 23
1,200 Harris Financial, Inc. 18
1,300 Haven BanCorp., Inc. 22
11,100 Independence Community Bank 157
3,050 Interwest BanCorp., Inc. 74
1,300 Jefferson Savings BanCorp., Inc. 19
1,200 JSB Financial, Inc. 63
3,000 Local Financial Corp.* 26
4,988 MAF BanCorp., Inc. 128
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- ------------------------------------------------------
<C> <S> <C>
2,100 Northwest BanCorp., Inc. $ 21
1,600 Ocean Financial Corp. 25
2,000 PBOC Holdings, Inc.* 22
5,200 Peoples BanCorp., Inc. 52
2,400 PFF BanCorp., Inc.* 37
2,650 Queens County BanCorp., Inc. 80
1,200 Reliance BanCorp., Inc. 35
3,900 Richmond County Financial Corp. 64
6,100 Roslyn BanCorp., Inc. 114
1,000 SIS BanCorp., Inc. 47
5,919 St. Paul BanCorp., Inc. 125
6,600 Staten Island BanCorp., Inc. 137
2,300 TR Financial Corp. 86
5,600 Webster Financial Corp. 155
1,118 WestCorp. 10
400 Wilshire Financial Services Group* 0
1,500 WSFS Financial Corp. 25
--------
2,654
--------
SEMICONDUCTORS--1.9%
2,800 Actel Corp.* 47
5,400 Amkor Technologies, Inc.* 34
3,400 Applied Micro Circuits Corp.* 114
900 Artisan Components, Inc.* 10
2,200 ATMI, Inc.* 42
2,875 Burr-Brown Corp.* 68
9,700 Cirrus Logic, Inc.* 119
13,300 Cypress Semiconductor Corp.* 135
4,100 Dallas Semiconductor Corp. 155
700 Dupont Photomasks, Inc.* 26
2,900 Electroglas, Inc.* 42
3,100 Etec Systems, Inc.* 102
4,100 General Semiconductor, Inc. 42
7,600 International Rectifier Corp.* 71
1,500 Kopin Corp.* 21
5,600 Lam Research Corp.* 100
3,300 Lattice Semiconductor Corp.* 122
5,200 Level One Communications, Inc.* 161
2,400 Marshall Industries* 62
2,900 MEMC Electronics Materials* 27
5,000 Novellus Systems, Inc.* 248
5,300 OAK Technology, Inc.* 21
3,100 Photronics, Inc.* 62
3,837 Pioneer Standard Electronics 42
2,200 Plexus Corp.* 66
4,500 PMC-Sierra, Inc.* 242
1,300 Qlogic Corp.* 133
1,800 SDL, Inc.* 40
1,800 Semtech Corp.* 53
4,800 Silicon Valley Group, Inc.* 59
1,500 Siliconix, Inc.* 29
3,100 Ultratech Stepper, Inc.* 58
3,600 Unitrode Corp.* 61
6,400 Vlsi Technology, Inc.* 73
--------
2,687
--------
</TABLE>
See accompanying notes to financial statements.
86
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Description Value
- -----------------------------------------------------
<C> <S> <C>
SHIPBUILDING--0.2%
1,400 Avondale Industries, Inc.* $ 39
4,250 Halter Marine Group, Inc.* 29
5,200 Newport News Shipbuilding 146
--------
214
--------
SOFTWARE--5.7%
2,200 3Dfx Interactive, Inc.* 28
6,200 Acclaim Entertainment, Inc.* 59
7,120 Acxiom Corp.* 168
600 Advantage Learning Systems, Inc.* 33
800 Advent Software, Inc.* 31
1,200 Alydaar Software Corp.* 11
6,200 American Management Systems* 183
1,340 Applied Graphics Technologies* 17
2,500 Aspect Development, Inc.* 84
3,600 Aspen Technology, Inc.* 51
3,400 Avid Technology, Inc.* 81
1,300 Avt Corp. Communication* 30
1,600 Barra, Inc.* 42
7,500 BEA Systems, Inc.* 90
2,400 Black Box Corp.* 84
4,176 Boole & Babbage, Inc.* 132
2,500 Broadvision, Inc.* 67
1,700 Business Records Holding 32
3,700 CCC Information Services Group* 41
3,800 Cerner Corp.* 100
2,100 Choicepoint, Inc.* 122
3,200 Clarify, Inc.* 58
2,600 CMG Information Services, Inc.* 202
1,300 CNET, Inc.* 69
2,100 Concentric Network Corp.* 60
1,900 Concord Communications, Inc.* 84
3,800 CSG Systems International* 238
2,300 Datastream Systems, Inc.* 23
1,700 Dataworks Corp.* 13
1,100 Deltek Systems, Inc.* 19
2,700 Dendrite International, Inc.* 52
1,400 Dialogic Corp.* 31
1,800 Digi International, Inc.* 23
1,700 Documentum, Inc.* 72
2,100 Doubleclick, Inc.* 85
2,000 Earthlink Network, Inc.* 122
1,000 Engineering Animation, Inc.* 39
3,900 Excite, Inc.* 191
1,800 Exodus Communications, Inc.* 61
1,500 Fair Issac & Co., Inc.* 60
4,300 Filenet Corp.* 37
4,400 General Magic, Inc.* 23
1,300 Genesys Telecomm Labs, Inc. 37
1,200 Great Plains Software, Inc.* 47
3,800 Gt Interactive Software Corp.* 23
1,400 H.T.E., Inc.* 13
4,375 Harbinger Corp.* 38
3,800 HNC Software* 125
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- ------------------------------------------------------
<C> <S> <C>
4,385 Hyperion Solutions Corp.* $ 142
1,400 IDX Systems Corp.* 57
1,700 IMRglobal Corp.* 36
4,500 Indus International, Inc.* 22
3,900 Industri-Matematik International* 24
4,300 Information Resources, Inc.* 36
22,500 Informix Corp.* 122
3,600 Infoseek Corp.* 123
4,100 InfoUSA, Inc.* 23
7,500 Inprise Corp.* 42
1,550 Inspire Insurance Solutions, Inc.* 52
2,700 Integrated Systems, Inc.* 27
3,100 Inter-Tel, Inc.* 74
2,900 JDA Software Group, Inc.* 23
5,400 Legato Systems, Inc.* 258
5,650 Lycos, Inc.* 333
5,000 Macromedia, Inc.* 140
2,900 Manugistics Group, Inc.* 25
2,200 Mapics, Inc.* 43
1,500 Medical Manager Corp.* 42
2,200 Mercury Interactive Corp.* 101
900 Metro Information Services, Inc.* 23
1,500 Micromuse, Inc.* 34
4,173 Midway Games, Inc.* 42
2,300 Mindspring Enterprises, Inc.* 148
400 Mobius Management Systems, Inc.* 5
5,000 National Data Corp. 187
2,150 National Instruments Corp.* 62
600 Network Solutions, Inc.* 39
1,000 New ERA of Networks, Inc.* 74
1,400 Objective Systems Integrator* 6
3,300 Open Market, Inc.* 57
800 Pegasystems, Inc.* 5
1,100 Peregrine Systems, Inc.* 41
1,200 Pinnacle Systems, Inc.* 40
3,500 Platinum Software Corp.* 37
1,800 Preview Travel, Inc.* 34
2,500 Progress Software Corp.* 63
1,000 Project Software & Development* 30
6,300 Psinet, Inc.* 118
1,000 QAD, Inc.* 4
2,500 Quadramed Corp. 60
12,685 Rational Software Corp.* 288
1,300 RealNetworks, Inc.* 50
3,300 Remedy Corp.* 34
900 Sanchez Computer Associates* 27
1,400 Sapient Corp.* 65
1,600 SCB Computer Technology, Inc.* 13
1,500 Schawk, Inc. 21
1,900 SEI Investments Co. 175
4,000 Shiva Corp.* 23
4,400 Software AG Systems, Inc.* 85
1,900 Sportsline USA, Inc.* 33
1,400 SS&C Technologies, Inc.* 16
5,300 Structural Dynamics Research* 92
</TABLE>
See accompanying notes to financial statements.
87
<PAGE>
Northern Institutional Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
November 30, 1998
(All amounts in thousands, except shares)
<TABLE>
<CAPTION>
Shares Description Value
- ------------------------------------------------------------
SMALL COMPANY INDEX PORTFOLIO--CONTINUED
<C> <S> <C>
SOFTWARE--Continued
11,800 Sybase, Inc.* $ 85
8,100 Symantec Corp.* 162
4,850 System Software Associates, Inc.* 33
4,000 Transaction Systems Architects, Inc.* 152
2,600 Transition Systems, Inc.* 26
2,800 Uscs International, Inc.* 90
3,800 Vantive Corp.* 32
700 Verio, Inc.* 13
2,300 Viasoft, Inc.* 17
3,600 Visio Corp.* 127
2,400 Wavephore, Inc.* 19
3,125 Wind River Systems* 146
--------
8,009
--------
TELECOMMUNICATION EQUIPMENT--1.6%
2,800 Adtran, Inc.* 69
4,000 Allen Telecom, Inc.* 28
13,690 American Tower Corp.* 316
3,400 Antec Corp.* 63
7,400 Aspect Telecommunications* 140
4,100 Associated Group, Inc.* 154
5,200 Cellnet Data Systems, Inc.* 30
500 Com21, Inc.* 9
5,600 Commscope, Inc.* 85
1,250 Davox Corp.* 9
6,800 Digital Microwave Corp.* 40
5,900 DSP Communications, Inc.* 88
800 Excel Switching Corp.* 21
2,700 Geotel Communications Corp.* 74
9,100 Glenayre Technologies, Inc.* 56
7,100 Interdigital Communications Corp.* 34
1,800 Metromedia Fiber Network, Inc.* 93
1,300 Natural Microsystems Corp.* 14
3,200 Network Equipment Technologies* 36
2,200 North Pittsburgh Systems, Inc. 31
900 OmniAmerica, Inc.* 22
300 Optical Cable Corp.* 4
5,000 Pagemart Wireless, Inc.* 30
10,300 Pairgain Technologies, Inc.* 104
6,400 P-Com, Inc.* 24
5,600 Picturetel Corp.* 40
2,400 Plantronics, Inc.* 158
500 Powerwave Technologies, Inc.* 7
3,700 Premisys Communications, Inc.* 55
8,700 SkyTel Communications, Inc.* 182
1,175 Superior Telecom, Inc. 51
5,000 Tekelec* 77
1,600 Westell Technologies, Inc.* 10
3,300 World Access, Inc.* 67
--------
2,221
--------
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- ----------------------------------------------------------
<C> <S> <C>
TELECOMMUNICATIONS--1.6%
1,500 Aerial Communications, Inc.* $ 6
2,100 American Mobile Satellite Corp.* 10
3,300 APAC Telecommunications, Corp.* 21
1,700 California Microwave* 21
2,350 Cellular Communications International, 146
1,600 Cellular Communications of Puerto Rico 24
2,200 Centennial Cellular Corp.* 88
3,000 Commnet Cellular, Inc.* 31
1,166 Commonwealth Telephone Enterprise* 32
1,300 CoreComm Limited 19
1,800 Echostar Communications Corp.* 70
1,000 Electric Lightwave, Inc.* 6
5,300 General Communication* 21
6,700 ICG Communications, Inc.* 154
2,400 IDT Corp.* 46
7,500 ITC Deltacom, Inc.* 118
3,900 IXC Communications, Inc.* 107
1,900 LCC International, Inc.* 8
1,800 Mastec, Inc. 42
4,000 Metrocall, Inc.* 18
400 MGC Communications, Inc.* 2
3,400 MRV Communications, Inc.* 22
1,400 Norstan, Inc.* 21
6,033 NTL, Inc.* 336
4,500 Omnipoint Corp.* 40
1,200 Pacific Gateway Exchange, Inc.* 54
2,400 PLD Telekom, Inc.* 6
2,200 Powertel, Inc.* 30
4,900 Premiere Technologies, Inc.* 24
4,900 RCN Corp.* 83
2,100 Smartalk Teleservices, Inc.* 10
3,100 Star Telecommunications, Inc.* 42
900 Telegroup, Inc.* 2
5,900 Tel-Save, Inc.* 70
1,350 Transaction Network Services, Inc.* 32
700 US LEC Corp.* 8
5,100 US Satellite Broadcasting Co.* 39
3,800 Vanguard Cellular Systems, Inc.* 87
2,600 West Teleservices Corp.* 29
11,100 Western Wireless Corp., Class A * 201
5,800 Winstar Communications, Inc.* 162
--------
2,288
--------
TELEPHONE--0.2%
5,200 Aliant Communications, Inc. 148
1,900 CFW Communications Co. 40
7,000 E.spire Communications, Inc.* 56
3,100 Primus Telecommunications* 39
2,600 USN Communications, Inc.* 1
--------
284
--------
TEXTILES--0.3%
8,900 Collins & Aikman Corp.* 47
1,000 Culp, Inc. 9
2,100 DAN River, Inc.* 17
2,750 G & K Services, Inc.* 139
</TABLE>
See accompanying notes to financial statements.
88
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Description Value
- ---------------------------------------------------------------
<C> <S> <C>
2,797 Guilford Mills, Inc. $ 40
6,800 Interface, Inc. 85
1,100 Pillowtex Corp. 37
1,500 Quaker Fabric Corp.* 10
1,700 Springs Industries, Inc. 66
1,300 Unifirst Corp. 29
--------
479
--------
Toys, Games and Hobbies--0.1%
2,100 Action Performance Companies, Inc.* 77
2,600 Department 56* 89
800 Marvel Enterprises, Inc.* 5
600 Media Arts Group, Inc.* 9
--------
180
--------
Transportation Services--1.4%
5,050 Air Express International Corp. 112
1,200 Airnet Systems, Inc.* 18
5,800 Alexander & Baldwin, Inc. 133
3,100 American Freightways Corp.* 28
3,000 Arnold Industries, Inc. 43
1,300 Atlas Air, Inc.* 60
6,000 C.H. Robinson Worldwide, Inc. 135
1,900 Circle International Group 33
3,500 Coach USA, Inc.* 99
3,100 Consolidated Freightways Corp.* 39
1,000 Covenant Transport, Inc.* 17
1,200 Dispatch Management Services Co.* 7
1,200 Eagle USA Airfreight, Inc.* 23
3,600 Expeditors International of Washington Inc. 139
1,700 Florida East Coast Industries 58
3,400 Fritz Cos., Inc.* 33
8,800 Greyhound Lines, Inc.* 53
900 Gulfmark offshore, Inc.* 14
2,539 Heartland Express, Inc.* 43
1,600 Hvide Marine, Inc.* 10
3,200 J.B. Hunt Transport Services, Inc. 61
3,100 Kirby Corp.* 62
2,500 Kitty Hawk, Inc.* 26
900 Knight Transportation, Inc.* 17
1,600 Landstar System, Inc.* 66
1,300 MS Carriers, Inc.* 32
3,200 offshore Logistics* 40
4,000 Overseas Shipholding Group 63
2,900 Pittston Bax Group 25
2,300 Roadway Express, Inc. 34
3,650 Swift Transportation Co., Inc.* 80
900 US Xpress Enterprises, Inc.* 14
3,850 Usfreightways Corp. 103
4,212 Werner Enterprises, Inc. 69
7,500 Wisconsin Central Transport* 136
3,400 Yellow Corp.* 55
--------
1,980
--------
</TABLE>
<TABLE>
<CAPTION>
Shares/
Principal
Amount Description Value
- --------------------------------------------------------------------
<C> <S> <C>
Trucking and Leasing--0.2%
1,200 Amerco, Inc.* $ 28
700 Greenbrier Cos., Inc. 10
2,000 Interpool, Inc. 29
7,100 Rollins Truck Leasing Corp. 85
2,500 Varlen Corp. 66
2,300 Xtra Corp. 109
--------
327
--------
Water Supply--0.2%
1,100 Aquarion Co. 41
1,726 California Water Service Group 45
1,200 E'Town Corp. 50
3,433 Philadelphia Suburban Corp. 87
3,952 United Water Resources, Inc. 82
--------
305
- --------------------------------------------------------------------
TOTAL COMMON STOCKS (Cost $120,743) $117,909
- --------------------------------------------------------------------
PREFERRED STOCKS--0.1%
Oil & Gas Services--0.0%
700 Dril-Quip* $ 10
--------
REITs--0.1%
1,500 Price Enterprises, Inc. 20
1,800 US Restaurants Properties, Inc. 44
--------
64
- --------------------------------------------------------------------
TOTAL PREFERRED STOCKS (Cost $82) $ 74
- --------------------------------------------------------------------
WARRANTS--0.0%
248 Corarm Healthcare Corp., Exp. 7-11-99 $ 0
350 Milicom American Satellite Corp., Exp. 6/30/99 0
- --------------------------------------------------------------------
TOTAL WARRANTS (Cost $0) $ 0
- --------------------------------------------------------------------
OTHER INVESTMENTS--0.0%
2,000 Escrow CFS Group, Inc.* $ 0
1,400 Escrow Millicom, Inc.* 0
900 Escrow Northeast Bancorp, Inc.* 0
2,790 Escrow Statesman Group, Inc.* 0
1,420 Escrow Strawbridge & Clothier* 0
1,700 Escrow Takecare, Inc.* 0
1,000 Escrow WCI Steel, Inc.* 0
- --------------------------------------------------------------------
TOTAL OTHER INVESTMENTS (Cost $0) $ 0
- --------------------------------------------------------------------
U.S. GOVERNMENT OBLIGATION--0.2%
U.S. Treasury Bill #
$340,000 3.970% Due 1/7/99 $ 337
- --------------------------------------------------------------------
TOTAL U.S. GOVERNMENT OBLIGATION--0.2% (Cost $337) $ 337
- --------------------------------------------------------------------
SHORT-TERM INVESTMENT--14.4%
Societe Generale, Paris
$20,249 5.375% Due 12/1/98 $ 20,249
- --------------------------------------------------------------------
TOTAL SHORT-TERM INVESTMENT--14.4%
(Cost $20,249) $ 20,249
- --------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
89
<PAGE>
Northern Institutional Funds
Equity Portfolios
- --------------------------------------------------------------------------------
Statements of Investments
November 30, 1998
(All amounts in thousands, except shares)
<TABLE>
<CAPTION>
Shares Description Value
- ------------------------------------------------------------
Small Company Index Portfolio--Concluded
- ------------------------------------------------------------
<C> <S> <C>
TOTAL INVESTMENTS--
98.4%
(Cost $141,411) $138,569
- ------------------------------------------------------------
Other assets, less
liablilites--1.6% 2,256
- ------------------------------------------------------------
NET ASSETS--100.0% $140,825
============================================================
</TABLE>
OPEN FUTURES CONTRACTS:
<TABLE>
<CAPTION>
Number of Contract Contract Contract Unrealized
Type Contracts Amount Position Expiration Gain
- ---------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Russell 2000 38 $7,555 Long 12/18/98 $32
- ---------------------------------------------------------------------------------
</TABLE>
*Non-income producing security.
#Security pledged to cover margin requirements for open futures contracts.
See accompanying notes to financial statements.
90
<PAGE>
[THIS PAGE INTENTIONALLY LEFT BLANK]
91
<PAGE>
Northern Institutional Funds
Equity Portfolios
- --------------------------------------------------------------------------------
Statements of Assets and Liabilities
November 30, 1998
(All amounts in thousands, except net asset value per share)
<TABLE>
<CAPTION>
Small
Diversified Equity Focused International International Company
Balanced Growth Index Growth Equity Index Growth Index
Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio
- -----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Assets:
Investments in
securities, at cost $53,632 $111,324 $ 918,468 $ 91,890 $41,963 $ 96,454 $141,411
- -----------------------------------------------------------------------------------------------------------
Investments in
securities, at value $67,732 $179,134 $1,366,695 $133,825 $44,726 $109,724 $138,569
Cash and foreign
currencies -- 1 16,300 -- 119 -- 1
Receivables:
Dividends and interest 384 170 1,736 98 66 104 90
Foreign tax reclaims -- -- -- -- 47 172 --
Fund shares sold 115 -- 476 40 -- 179 14,984
Investment securities
sold -- 94 68 962 40 3,956 --
Administrator 22 13 73 16 25 -- 29
Deferred organization
costs, net -- -- -- -- 11 5 --
Other assets -- 2 13 -- -- 1 2
- -----------------------------------------------------------------------------------------------------------
Total assets 68,253 179,414 1,385,361 134,941 45,034 114,141 153,675
- -----------------------------------------------------------------------------------------------------------
Liabilities:
Due to Custodian -- -- -- -- -- 1,204 --
Payable for:
Fund shares redeemed 22 45 7,579 249 9 18 63
Investment securities
purchased -- 190 58,574 -- 41 1,006 12,746
Accrued expenses:
Advisory fees 27 79 99 86 9 72 16
Administration fees 5 14 99 11 5 14 8
Custodian fees 2 2 16 2 6 12 8
Transfer agent fees 1 2 22 2 -- 1 1
Other liabilities 16 13 166 713 12 17 8
- -----------------------------------------------------------------------------------------------------------
Total liabilities 73 345 66,555 1,063 82 2,344 12,850
- -----------------------------------------------------------------------------------------------------------
Net assets $68,180 $179,069 $1,318,806 $133,878 $44,952 $111,797 $140,825
- -----------------------------------------------------------------------------------------------------------
Analysis of net assets:
Paid-in capital $47,851 $ 91,504 $789,141 $ 81,959 $40,101 $ 92,519 $119,053
Accumulated
undistributed
net investment income
(loss) 366 716 1,602 (110) 242 117 1,349
Accumulated net realized
gains on investments,
options, futures and
foreign currency
transactions 5,863 18,691 79,574 10,094 1,845 5,851 23,233
Net unrealized
appreciation
(depreciation) on
investments, options,
futures and foreign
currency transactions 14,100 68,158 448,489 41,935 2,763 13,270 (2,810)
Net unrealized gain on
translation of other
assets and liabilities
denominated in foreign
currencies -- -- -- -- 1 40 --
- -----------------------------------------------------------------------------------------------------------
Net assets $68,180 $179,069 $1,318,806 $133,878 $44,952 $111,797 $140,825
- -----------------------------------------------------------------------------------------------------------
Total shares outstanding
(no par value),
unlimited shares
authorized
Class A 4,146 10,021 51,782 7,529 3,752 9,470 10,680
Class C 366 -- 4,947 533 -- -- 67
Class D 51 64 1,404 110 1 17 66
- -----------------------------------------------------------------------------------------------------------
Net asset value,
offering and redemption
price per share
Class A $ 14.95 $ 17.76 $ 22.69 $ 16.39 $ 11.98 $ 11.78 $ 13.02
Class C $ 14.91 -- $ 22.64 $ 16.34 -- -- $ 12.98
Class D $ 14.88 $ 17.53 $ 22.58 $ 16.14 $ 11.97 $ 11.60 $ 12.94
- -----------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
92
<PAGE>
Northern Institutional Funds
Equity Portfolios
- --------------------------------------------------------------------------------
Statements of Operations
For the Year Ended November 30, 1998
(All amounts in thousands)
<TABLE>
<CAPTION>
Small
Diversified Equity Focused International International Company
Balanced Growth Index Growth Equity Index Growth Index
Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Investment income:
Dividend $ 329 $ 1,662 $ 16,896 $ 1,082 $ 865 $ 1,750 $ 1,694
Interest 1,720 165 975 67 29 363 171
- ----------------------------------------------------------------------------------------------------------
Total income 2,049 1,827 17,871 1,149 894(a) 2,113(b) 1,865
- ----------------------------------------------------------------------------------------------------------
Expenses:
Investment advisory fees 477 1,316 3,411 1,438 235 1,087 497
Administration fees 59 165 1,137 131 70 163 124
Custodian fees 23 28 268 29 68 122 228
Registration fees 27 24 103 23 59 5 28
Amortization of deferred
organization costs 7 1 1 10 4 14 1
Transfer agent fees 12 18 250 24 5 11 14
Shareholder servicing
fees 10 3 232 18 -- 1 3
Professional fees 7 14 60 6 5 4 9
Trustee fees and ex-
penses 3 3 30 3 2 2 3
Other 12 15 68 30 24 12 18
- ----------------------------------------------------------------------------------------------------------
Total expenses 637 1,587 5,560 1,712 472 1,421 925
Less voluntary waivers
of investment advisory
fees (179) (411) (2,274) (392) (118) (217) (248)
Less expenses reimburs-
able by Administrator (79) (83) (504) (84) (98) (50) (282)
- ----------------------------------------------------------------------------------------------------------
Net expenses 379 1,093 2,782 1,236 256 1,154 395
- ----------------------------------------------------------------------------------------------------------
Net investment income
(loss) 1,670 734 15,089 (87) 638 959 1,470
Net realized gains
(losses) on:
Investment transactions 5,868 18,516 79,906 10,129 1,850 9,914 22,988
Futures transactions -- 266 3,115 37 -- -- (143)
Foreign currency trans-
actions -- -- -- -- (32) (89) --
Net change in unrealized
appreciation
(depreciation) on
investments, options,
futures, and foreign
currency transactions 2,033 17,053 132,779 17,953 4,011 8,909 (28,927)
Net change in unrealized
gains on translation of
other assets and
liabilities denominated
in foreign currencies -- -- -- -- 4 46 --
- ----------------------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets resulting
from operations $9,571 $36,569 $230,889 $28,032 $6,471 $19,739 $(4,612)
- ----------------------------------------------------------------------------------------------------------
</TABLE>
(a) Net of $88 in non-reclaimable foreign withholding taxes.
(b) Net of $159 in non-reclaimable foreign withholding taxes.
See accompanying notes to financial statements.
93
<PAGE>
Northern Institutional Funds
Equity Portfolios
- --------------------------------------------------------------------------------
Statements of Changes in Net Assets
For the Years Ended November 30, 1998 and 1997
(All amounts in thousands)
<TABLE>
<CAPTION>
Balanced Diversified
Portfolio Growth Portfolio
----------------- ------------------
1998 1997 1998 1997
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Increase (decrease) in net assets from
operations:
Net investment income (loss) $ 1,670 $ 1,606 $ 734 $ 1,090
Net realized gains (losses) on invest-
ments, options, futures and foreign
currency transactions 5,868 2,227 18,782 18,135
Net change in unrealized appreciation
(depreciation) on investments,
options, futures and foreign currency
transactions 2,033 4,839 17,053 14,940
Net change in unrealized gains (losses)
on translations of other assets and
liabilities denominated in foreign
currencies -- -- -- --
- --------------------------------------------------------------------------------
Net increase (decrease) in net assets
resulting from operations 9,571 8,672 36,569 34,165
- --------------------------------------------------------------------------------
Distributions to Class A shareholders
from:
Net investment income (1,247) (1,436) (1,086) (1,369)
Net realized gains (1,990) (1,132) (18,075) (14,420)
- --------------------------------------------------------------------------------
Total distributions to Class A share-
holders (3,237) (2,568) (19,161) (15,789)
- --------------------------------------------------------------------------------
Distributions to Class C shareholders:
Net investment income (107) (151) -- --
Net realized gains (174) (152) -- --
- --------------------------------------------------------------------------------
Total distributions to Class C share-
holders (281) (303) -- --
- --------------------------------------------------------------------------------
Distributions to Class D shareholders:
Net investment income (14) (8) (4) (4)
Net realized gains (29) (6) (104) (45)
- --------------------------------------------------------------------------------
Total distributions to Class D share-
holders (43) (14) (108) (49)
- --------------------------------------------------------------------------------
Class A share transactions:
Proceeds from the sale of shares 19,629 7,638 13,164 13,555
Reinvested distributions 3,204 2,538 18,263 14,520
Cost of shares redeemed (17,773) (9,103) (29,056) (29,982)
- --------------------------------------------------------------------------------
Net increase (decrease) in net assets
resulting from Class A share transac-
tions 5,060 1,073 2,371 (1,907)
- --------------------------------------------------------------------------------
Class C share transactions:
Proceeds from the sale of shares 1,465 1,106 -- --
Reinvested distributions 281 303 -- --
Cost of shares redeemed (1,386) (3,329) -- --
- --------------------------------------------------------------------------------
Net increase (decrease) in net assets
resulting from Class C share transac-
tions 360 (1,920) -- --
- --------------------------------------------------------------------------------
Class D share transactions:
Proceeds from the sale of shares 618 140 511 215
Reinvested distributions 43 14 108 49
Cost of shares redeemed (295) (96) (300) (93)
- --------------------------------------------------------------------------------
Net increase (decrease) in net assets
resulting from Class D share transac-
tions 366 58 319 171
- --------------------------------------------------------------------------------
Net increase (decrease) 11,796 4,998 19,990 16,591
Net assets--beginning of year 56,384 51,386 159,079 142,488
- --------------------------------------------------------------------------------
Net assets--end of year $ 68,180 $56,384 $179,069 $159,079
- --------------------------------------------------------------------------------
Accumulated undistributed net investment
income (loss) $ 366 $ 60 $ 716 $ 1,072
- --------------------------------------------------------------------------------
</TABLE>
(a) For the period April 1, 1997 (commencement of operations) through November
30, 1997.
See accompanying notes to financial statements.
94
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
International
Equity Index Focused Growth Equity Index International Small Company
Portfolio Portfolio Portfolio Growth Portfolio Index Portfolio
- --------------------- ------------------ ----------------- ------------------ ------------------
1998 1997 1998 1997 1998 1997 (a) 1998 1997 1998 1997
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
$ 15,089 $ 13,574 $ (87) $ 327 $ 638 $ 312 $ 959 $ 1,206 $ 1,470 $ 1,478
83,021 72,933 10,166 23,396 1,818 (3) 9,825 4,368 22,845 9,968
132,779 119,879 17,953 4,216 4,011 (1,248) 8,909 138 (28,927) 13,285
-- -- -- -- 4 (3) 46 (21) -- --
- -----------------------------------------------------------------------------------------------------
230,889 206,386 28,032 27,939 6,471 (942) 19,739 5,691 (4,612) 24,731
- -----------------------------------------------------------------------------------------------------
(12,617) (12,212) (321) (130) (678) -- (1,630) (1,022) (1,365) (1,364)
(64,765) (32,814) (20,346) (12,039) -- -- (5,679) (5,790) (8,892) (13,019)
- -----------------------------------------------------------------------------------------------------
(77,382) (45,026) (20,667) (12,169) (678) -- (7,309) (6,812) (10,257) (14,383)
- -----------------------------------------------------------------------------------------------------
(1,037) (1,052) (5) (4) -- -- -- -- -- --
(5,908) (2,679) (1,471) (811) -- -- -- -- -- --
- -----------------------------------------------------------------------------------------------------
(6,945) (3,731) (1,476) (815) -- -- -- -- -- --
- -----------------------------------------------------------------------------------------------------
(298) (313) (1) -- -- -- (3) (1) (5) (1)
(2,272) (399) (270) (79) -- -- (15) (4) (43) (13)
- -----------------------------------------------------------------------------------------------------
(2,570) (712) (271) (79) -- -- (18) (5) (48) (14)
- -----------------------------------------------------------------------------------------------------
512,427 340,805 20,270 21,470 22,035 36,436 9,817 11,482 99,274 46,673
68,757 41,881 19,625 11,306 649 -- 6,291 5,984 9,261 13,462
(376,883) (354,580) (37,427) (37,017) (17,779) (1,250) (23,669) (47,748) (102,546) (35,376)
- -----------------------------------------------------------------------------------------------------
204,301 28,106 2,468 (4,241) 4,905 35,186 (7,561) (30,282) 5,989 24,759
- -----------------------------------------------------------------------------------------------------
44,422 41,164 178 171 -- -- -- -- 2,017 --
6,945 3,733 1,476 814 -- -- -- -- -- --
(35,066) (28,213) (1,678) (623) -- -- -- -- (1,148) --
- -----------------------------------------------------------------------------------------------------
16,301 16,684 (24) 362 -- -- -- -- 869 --
- -----------------------------------------------------------------------------------------------------
10,633 22,852 770 491 10 -- 162 200 544 583
2,526 561 271 79 -- -- 17 4 48 14
(16,644) (5,161) (558) (133) -- -- (241) (64) (285) (238)
- -----------------------------------------------------------------------------------------------------
(3,485) 18,252 483 437 10 -- (62) 140 307 359
- -----------------------------------------------------------------------------------------------------
361,109 219,959 8,545 11,434 10,708 34,244 4,789 (31,268) (7,752) 35,452
957,697 737,738 125,333 113,899 34,244 -- 107,008 138,276 148,577 113,125
- -----------------------------------------------------------------------------------------------------
$1,318,806 $ 957,697 $133,878 $125,333 $ 44,952 $34,244 $111,797 $107,008 $140,825 $148,577
- -----------------------------------------------------------------------------------------------------
$ 1,602 $ 465 $ (110) $ 304 $ 242 $ 314 $ 117 $ 880 $ 1,349 $ 1,272
- -----------------------------------------------------------------------------------------------------
</TABLE>
95
<PAGE>
Northern Institutional Funds
Equity Portfolios
- -------------------------------------------------------------------------------
Financial Highlights
For the Years Ended November 30,
Balanced Portfolio
<TABLE>
<CAPTION>
Class A
-------------------------------------------
1998 1997 1996 1995 1994
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of
year $ 13.59 $ 12.24 $ 11.05 $ 9.50 $ 10.22
Income (loss) from investment op-
erations:
Net investment income 0.38 0.38 0.34 0.34 0.24
Net realized and unrealized gain
(loss) 1.81 1.66 1.19 1.55 (0.72)
- --------------------------------------------------------------------------------
Total income (loss) from invest-
ment operations 2.19 2.04 1.53 1.89 (0.48)
- --------------------------------------------------------------------------------
Distributions to shareholders
from:
Net investment income (0.32) (0.38) (0.34) (0.34) (0.22)
Net realized gain (0.51) (0.31) -- -- (0.02)
- --------------------------------------------------------------------------------
Total distributions to sharehold-
ers (0.83) (0.69) (0.34) (0.34) (0.24)
- --------------------------------------------------------------------------------
Net increase (decrease) 1.36 1.35 1.19 1.55 (0.72)
- --------------------------------------------------------------------------------
Net asset value, end of year $ 14.95 $ 13.59 $ 12.24 $ 11.05 $ 9.50
- --------------------------------------------------------------------------------
Total return (c) 16.90% 17.29% 14.07% 20.22% (4.76)%
Ratio to average net assets of
(d):
Expenses, net of waivers and re-
imbursements 0.61% 0.61% 0.61% 0.61% 0.61%
Expenses, before waivers and re-
imbursements 1.04% 1.11% 1.20% 1.28% 1.50%
Net investment income, net of
waivers and reimbursements 2.83% 2.99% 3.03% 3.36% 2.56%
Net investment income, before
waivers and reimbursements 2.40% 2.49% 2.44% 2.69% 1.68%
Portfolio turnover rate 67.16% 59.06% 104.76% 93.39% 75.69%
Net assets at end of year (in
thousands) $61,969 $51,475 $45,157 $38,897 $31,462
- --------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Class C Class D
------------------------ ------------------------
1998 1997 1996 (a) 1998 1997 1996 (b)
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
year $13.56 $12.24 $11.12 $13.54 $12.23 $11.34
Income from investment opera-
tions:
Net investment income 0.37 0.36 0.29 0.40 0.34 0.22
Net realized and unrealized
gain 1.78 1.64 1.12 1.72 1.64 0.96
- --------------------------------------------------------------------------------
Total income from investment
operations 2.15 2.00 1.41 2.12 1.98 1.18
- --------------------------------------------------------------------------------
Distributions to shareholders
from:
Net investment income (0.29) (0.37) (0.29) (0.27) (0.36) (0.29)
Net realized gain (0.51) (0.31) -- (0.51) (0.31) --
- --------------------------------------------------------------------------------
Total distributions to share-
holders (0.80) (0.68) (0.29) (0.78) (0.67) (0.29)
- --------------------------------------------------------------------------------
Net increase 1.35 1.32 1.12 1.34 1.31 0.89
- --------------------------------------------------------------------------------
Net asset value, end of year $14.91 $13.56 $12.24 $14.88 $13.54 $12.23
- --------------------------------------------------------------------------------
Total return (c) 16.61% 17.00% 12.72% 16.45% 16.82% 10.55%
Ratio to average net assets
of (d):
Expenses, net of waivers and
reimbursements 0.85% 0.85% 0.85% 1.00% 1.00% 1.00%
Expenses, before waivers and
reimbursements 1.28% 1.35% 1.44% 1.43% 1.50% 1.59%
Net investment income, net
of waivers and reimburse-
ments 2.58% 2.75% 2.80% 2.44% 2.60% 2.78%
Net investment income, be-
fore waivers and reimburse-
ments 2.15% 2.25% 2.21% 2.01% 2.10% 2.19%
Portfolio turnover rate 67.16% 59.06% 104.76% 67.16% 59.06% 104.76%
Net assets at end of year (in
thousands) $5,459 $4,587 $5,997 $ 752 $ 322 $ 232
- --------------------------------------------------------------------------------
</TABLE>
(a) For the period December 29, 1995 (Class C shares issue date) through
November 30, 1996.
(b) For the period February 20, 1996 (Class D shares issue date) through
November 30, 1996.
(c) Assumes investment at net asset value at the beginning of the year,
reinvestment of all dividends and distributions, and a complete redemption
of the investment at the net asset value at the end of the year. Total
return is not annualized for periods less than one year.
(d) Annualized for periods less than a full year.
See accompanying notes to financial statements.
96
<PAGE>
Northern Institutional Funds
Equity Portfolios
- -------------------------------------------------------------------------------
Financial Highlights
For the Years Ended November 30,
Diversified Growth Portfolio
<TABLE>
<CAPTION>
Class A
------------------------------------------------
1998 1997 1996 1995 1994
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning
of year $ 16.20 $ 14.36 $ 12.20 $ 9.88 $ 10.65
Income (loss) from
investment operations:
Net investment income 0.07 0.11 0.14 0.15 0.09
Net realized and unrealized
gain (loss) 3.46 3.33 2.33 2.26 (0.83)
- --------------------------------------------------------------------------------
Total income (loss) from
investment operations 3.53 3.44 2.47 2.41 (0.74)
- --------------------------------------------------------------------------------
Distributions to sharehold-
ers from:
Net investment income (0.11) (0.14) (0.15) (0.09) (0.01)
Net realized gain (1.86) (1.46) (0.16) -- (0.02)
- --------------------------------------------------------------------------------
Total distributions to
shareholders (1.97) (1.60) (0.31) (0.09) (0.03)
- --------------------------------------------------------------------------------
Net increase (decrease) 1.56 1.84 2.16 2.32 (0.77)
- --------------------------------------------------------------------------------
Net asset value, end of year $ 17.76 $ 16.20 $ 14.36 $ 12.20 $ 9.88
- --------------------------------------------------------------------------------
Total return (b) 25.22% 27.06% 20.83% 24.55% (6.98)%
Ratio to average net assets
of (c):
Expenses, net of waivers
and reimbursements 0.66% 0.67% 0.66% 0.69% 0.67%
Expenses, before waivers
and reimbursements 0.96% 1.03% 1.10% 1.12% 1.08%
Net investment income, net
of waivers and
reimbursements 0.45% 0.76% 0.98% 1.16% 0.77%
Net investment income,
before waivers and
reimbursements 0.15% 0.40% 0.54% 0.73% 0.35%
Portfolio turnover rate 37.74% 45.53% 59.99% 81.65% 78.94%
Net assets at end of year
(in thousands) $177,947 $158,383 $142,055 $146,731 $164,963
- --------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Class D
-----------------------------------------
1998 1997 1996 1995 1994 (a)
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year $16.03 $14.26 $12.16 $ 9.88 $10.41
Income (loss) from investment
operations:
Net investment income 0.03 0.09 0.11 0.11 0.01
Net realized and unrealized gain
(loss) 3.40 3.27 2.29 2.25 (0.54)
- -------------------------------------------------------------------------------
Total income (loss) from investment
operations 3.43 3.36 2.40 2.36 (0.53)
- -------------------------------------------------------------------------------
Distributions to shareholders from:
Net investment income (0.07) (0.13) (0.14) (0.08) --
Net realized gain (1.86) (1.46) (0.16) -- --
- -------------------------------------------------------------------------------
Total distributions to shareholders (1.93) (1.59) (0.30) (0.08) --
- -------------------------------------------------------------------------------
Net increase (decrease) 1.50 1.77 2.10 2.28 (0.53)
- -------------------------------------------------------------------------------
Net asset value, end of year $17.53 $16.03 $14.26 $12.16 $ 9.88
- -------------------------------------------------------------------------------
Total return (b) 24.73% 26.60% 20.39% 24.19% (5.14)%
Ratio to average net assets of (c):
Expenses, net of waivers and
reimbursements 1.05% 1.06% 1.05% 1.08% 1.05%
Expenses, before waivers and
reimbursements 1.35% 1.42% 1.49% 1.51% 1.46%
Net investment income, net of
waivers and reimbursements 0.06% 0.37% 0.59% 0.73% 0.94%
Net investment income (loss),
before waivers and reimbursements (0.24)% 0.01% 0.15% 0.30% 0.53%
Portfolio turnover rate 37.74% 45.53% 59.99% 81.65% 78.94%
Net assets at end of year (in thou-
sands) $1,122 $ 696 $ 433 $ 221 $ 40
- -------------------------------------------------------------------------------
</TABLE>
(a) For the period September 14, 1994 (Class D shares issued date) through
November 30, 1994.
(b) Assumes investment at net asset value at the beginning of the year,
reinvestment of all dividends and distributions, and a complete redemption
of the investment at the net asset value at the end of the year. Total
return is not annualized for periods less than one year.
(c) Annualized for periods less than a full year.
See accompanying notes to financial statements.
97
<PAGE>
Northern Institutional Funds
Equity Portfolios
- -------------------------------------------------------------------------------
Financial Highlights
For the Years Ended November 30,
Equity Index Portfolio
<TABLE>
<CAPTION>
Class A
--------------------------------------------------
1998 1997 1996 1995 1994
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning
of year $ 20.09 $ 16.79 $ 13.86 $ 10.60 $ 10.78
Income (loss) from
investment operations:
Net investment income 0.28 0.30 0.31 0.30 0.27
Net realized and
unrealized gain (loss) 4.02 4.13 3.36 3.47 (0.18)
- --------------------------------------------------------------------------------
Total income from
investment operations 4.30 4.43 3.67 3.77 0.09
- --------------------------------------------------------------------------------
Distributions to
shareholders from:
Net investment income (0.26) (0.30) (0.31) (0.30) (0.27)
Net realized gain (1.44) (0.83) (0.43) (0.21) --
- --------------------------------------------------------------------------------
Total distributions to
shareholders (1.70) (1.13) (0.74) (0.51) (0.27)
- --------------------------------------------------------------------------------
Net increase (decrease) 2.60 3.30 2.93 3.26 (0.18)
- --------------------------------------------------------------------------------
Net asset value, end of
year $ 22.69 $ 20.09 $ 16.79 $ 13.86 $ 10.60
- --------------------------------------------------------------------------------
Total return (c) 23.39% 27.93% 27.53% 36.60% 0.87%
Ratio to average net assets
of (d):
Expenses, net of waivers
and reimbursements 0.21% 0.22% 0.22% 0.22% 0.23%
Expenses, before waivers
and reimbursements 0.46% 0.46% 0.50% 0.54% 0.59%
Net investment income, net
of waivers and
reimbursements 1.36% 1.66% 2.12% 2.54% 2.62%
Net investment income,
before waivers and
reimbursements 1.11% 1.42% 1.84% 2.22% 2.25%
Portfolio turnover rate 15.26% 18.96% 18.02% 15.27% 71.98%
Net assets at end of year
(in thousands) $1,175,112 $844,065 $675,804 $479,763 $281,817
- --------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Class C Class D
------------------------------------ ------------------------------------------
1998 1997 1996 1995 (a) 1998 1997 1996 1995 1994 (b)
- -----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of year $ 20.05 $ 16.79 $ 13.86 $ 13.43 $ 20.00 $ 16.77 $13.83 $10.60 $10.96
Income (loss) from
investment operations:
Net investment income 0.24 0.26 0.28 0.05 0.21 0.26 0.27 0.25 0.02
Net realized and
unrealized gain (loss) 4.01 4.11 3.35 0.45 4.00 4.07 3.36 3.47 (0.31)
- -----------------------------------------------------------------------------------------------------------
Total income (loss) from
investment operations 4.25 4.37 3.63 0.50 4.21 4.33 3.63 3.72 (0.29)
- -----------------------------------------------------------------------------------------------------------
Distributions to
shareholders from:
Net investment income (0.22) (0.28) (0.27) (0.07) (0.19) (0.27) (0.26) (0.28) (0.07)
Net realized gain (1.44) (0.83) (0.43) -- (1.44) (0.83) (0.43) (0.21) --
- -----------------------------------------------------------------------------------------------------------
Total distributions to
shareholders (1.66) (1.11) (0.70) (0.07) (1.63) (1.10) (0.69) (0.49) (0.07)
- -----------------------------------------------------------------------------------------------------------
Net increase (decrease) 2.59 3.26 2.93 0.43 2.58 3.23 2.94 3.23 (0.36)
- -----------------------------------------------------------------------------------------------------------
Net asset value, end of
year $ 22.64 $ 20.05 $ 16.79 $ 13.86 $ 22.58 $ 20.00 $16.77 $13.83 $10.60
- -----------------------------------------------------------------------------------------------------------
Total return (c) 23.09% 27.64% 27.24% 3.94% 22.90% 27.45% 27.20% 36.20% (2.68)%
Ratio to average net
assets of (d):
Expenses, net of
waivers and
reimbursements 0.45% 0.46% 0.46% 0.46% 0.60% 0.61% 0.61% 0.61% 0.60%
Expenses, before
waivers and
reimbursements 0.70% 0.70% 0.74% 0.78% 0.85% 0.85% 0.89% 0.93% 0.96%
Net investment income,
net of waivers and
reimbursements 1.12% 1.42% 1.89% 2.29% 0.97% 1.27% 1.78% 2.07% 2.67%
Net investment income,
before waivers and
reimbursements 0.87% 1.18% 1.61% 1.97% 0.71% 1.03% 1.50% 1.75% 2.31%
Portfolio turnover rate 15.26% 18.96% 18.02% 15.27% 15.26% 18.96% 18.02% 15.27% 71.98%
Net assets at end of
year (in thousands) $111,991 $82,982 $53,929 $18,390 $31,703 $30,650 $8,005 $ 810 $ 3
- -----------------------------------------------------------------------------------------------------------
</TABLE>
(a) For the period September 28, 1995 (Class C shares issue date) through
November 30, 1995.
(b) For the period September 14, 1994 (Class D shares issue date) through
November 30, 1994.
(c) Assumes investment at net asset value at the beginning of the year,
reinvestment of all dividends and distributions, and a complete redemption
of the investment at the net asset value at the end of the year. Total
return is not annualized for periods less than one year.
(d) Annualized for periods less than a full year.
See accompanying notes to financial statements.
98
<PAGE>
Northern Institutional Funds
Equity Portfolios
- -------------------------------------------------------------------------------
Financial Highlights
For the Years Ended November 30,
Focused Growth Portfolio
<TABLE>
<CAPTION>
Class A
--------------------------------------------------
1998 1997 1996 1995 1994
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value,
beginning of year $ 16.20 $ 14.48 $ 12.53 $ 9.79 $ 10.43
Income (loss) from
investment operations:
Net investment income
(loss) (0.01) 0.05 0.02 0.05 0.02
Net realized and
unrealized gain (loss) 3.10 3.37 2.17 2.71 (0.66)
- -------------------------------------------------------------------------------
Total income (loss) from
investment operations 3.09 3.42 2.19 2.76 (0.64)
- -------------------------------------------------------------------------------
Distributions to share-
holders from:
Net investment income (0.05) (0.02) (0.05) (0.02) --
Net realized gain (2.85) (1.68) (0.19) -- --
- -------------------------------------------------------------------------------
Total distributions to
shareholders (2.90) (1.70) (0.24) (0.02) --
- -------------------------------------------------------------------------------
Net increase (decrease) 0.19 1.72 1.95 2.74 (0.64)
- -------------------------------------------------------------------------------
Net asset value, end of
year $ 16.39 $ 16.20 $ 14.48 $ 12.53 $ 9.79
- -------------------------------------------------------------------------------
Total return (c) 24.03% 27.05% 17.82% 28.38% (6.15)%
Ratio to average net as-
sets of (d):
Expenses, net of waivers
and reimbursements 0.92% 0.92% 0.91% 0.91% 0.91%
Expenses, before waivers
and reimbursements 1.29% 1.34% 1.43% 1.47% 1.55%
Net investment income
(loss), net of waivers
and reimbursements (0.04)% 0.30% 0.12% 0.46% 0.24%
Net investment loss,
before waivers and
reimbursements (0.41)% (0.12)% (0.40)% (0.10)% (0.39)%
Portfolio turnover rate 79.11% 108.29% 116.78% 85.93% 74.28%
Net assets at end of year
(in thousands) $123,380 $115,802 $106,250 $86,099 $57,801
- -------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Class C Class D
---------------------------- --------------------------------------
1998 1997 1996 (a) 1998 1997 1996 1995 (b)
- ------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of year $ 16.16 $ 14.47 $ 13.46 $ 16.01 $ 14.37 $ 12.48 $ 9.55
Income (loss) from
investment operations:
Net investment income
(loss) (0.05) 0.01 (0.01) (0.05) 0.03 (0.03) 0.02
Net realized and
unrealized gain 3.09 3.37 1.02 3.04 3.30 2.15 2.93
- ------------------------------------------------------------------------------------------------
Total income from in-
vestment operations 3.04 3.38 1.01 2.99 3.33 2.12 2.95
- ------------------------------------------------------------------------------------------------
Distributions to share-
holders from:
Net investment income (0.01) (0.01) -- (0.01) (0.01) (0.04) (0.02)
Net realized gain (2.85) (1.68) -- (2.85) (1.68) (0.19) --
- ------------------------------------------------------------------------------------------------
Total distributions to
shareholders (2.86) (1.69) -- (2.86) (1.69) (0.23) (0.02)
- ------------------------------------------------------------------------------------------------
Net increase 0.18 1.69 1.01 0.13 1.64 1.89 2.93
- ------------------------------------------------------------------------------------------------
Net asset value, end of
year $ 16.34 $ 16.16 $ 14.47 $ 16.14 $ 16.01 $ 14.37 $12.48
- ------------------------------------------------------------------------------------------------
Total return (c) 23.73% 26.75% 7.51% 23.60% 26.52% 17.42% 30.97%
Ratio to average net as-
sets of (d):
Expenses, net of
waivers and
reimbursements 1.16% 1.16% 1.15% 1.31% 1.31% 1.30% 1.30%
Expenses, before
waivers and
reimbursements 1.53% 1.58% 1.67% 1.68% 1.73% 1.82% 1.86%
Net investment income
(loss), net of waivers
and reimbursements (0.29)% 0.06% (0.12)% (0.44)% (0.09)% (0.28)% (0.11)%
Net investment loss,
before waivers and
reimbursements (0.66)% (0.36)% (0.64)% (0.81)% (0.51)% (0.80)% (0.67)%
Portfolio turnover rate 79.11% 108.29% 116.78% 79.11% 108.29% 116.78% 85.93%
Net assets at end of
year (in thousands) $ 8,719 $ 8,325 $ 6,993 $ 1,779 $ 1,206 $ 656 $ 489
- ------------------------------------------------------------------------------------------------
</TABLE>
(a) For the period June 14, 1996 (Class C shares issue date) through November
30, 1996.
(b) For the period December 8, 1994 (Class D shares issue date) through
November 30, 1995.
(c) Assumes investment at net asset value at the beginning of the year,
reinvestment of all dividends and distributions, and a complete redemption
of the investment at the net asset value at the end of the year. Total
return is not annualized for periods less than one year.
(d) Annualized for periods less than a full year.
See accompanying notes to financial statements.
99
<PAGE>
Northern Institutional Funds
Equity Portfolios
- -------------------------------------------------------------------------------
Financial Highlights
For the Years Ended November 30,
International Equity Index Portfolio
<TABLE>
<CAPTION>
Class A Class D
----------------- -------------
1998 1997 (a) 1998 (b)
- -----------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value, beginning of year $ 10.55 $ 10.00 $ 9.88
Income from investment operations:
Net investment income 0.14 0.10 --
Net realized and unrealized gain 1.46 0.45 2.09
- -----------------------------------------------------------------------------
Total income from investment operations 1.60 0.55 2.09
- -----------------------------------------------------------------------------
Distributions to shareholders from:
Net investment income (0.17) -- --
Net realized gain -- -- --
- -----------------------------------------------------------------------------
Total distributions to shareholders (0.17) -- --
- -----------------------------------------------------------------------------
Net increase 1.43 0.55 2.09
- -----------------------------------------------------------------------------
Net asset value, end of year $ 11.98 $ 10.55 $11.97
- -----------------------------------------------------------------------------
Total return (c) 15.50% 5.45% 21.15 %
Ratio to average net assets of (d):
Expenses, net of waivers and reimbursements 0.55% 0.51% 0.94 %
Expenses, before waivers and reimbursements 1.00% 1.08% 1.39 %
Net investment income, net of waivers and
reimbursements 1.36% 1.75% (0.11)%
Net investment income, before waivers and
reimbursements 0.91% 1.18% (0.80)%
Portfolio turnover rate 41.53% 8.16% 41.53 %
Net assets at end of year (in thousands) $44,940 $34,244 $ 12
- -----------------------------------------------------------------------------
</TABLE>
(a) For the period April 1, 1997 (commencement of operations) through November
30, 1997.
(b) For the period October 5, 1998 (Class D shares issue date) through
November 30, 1998.
(c) Assumes investment at net asset value at the beginning of the year,
reinvestment of all dividends and distributions, and a complete redemption
of the investment at the net asset value at the end of the year. Total
return is not annualized for periods less than one year.
(d) Annualized for periods less than a full year.
See accompanying notes to financial statements.
100
<PAGE>
Northern Institutional Funds
Equity Portfolios
- -------------------------------------------------------------------------------
Financial Highlights
For the Years Ended November 30,
International Growth Portfolio
<TABLE>
<CAPTION>
Class A
-------------------------------------------------
1998 1997 1996 1995 1994(a)
- ---------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, begin-
ning of year $ 10.52 $ 10.63 $ 9.88 $ 10.21 $ 10.00
Income (loss) from in-
vestment operations:
Net investment income 0.09 0.11 0.10 0.12 0.05
Net realized and
unrealized gain (loss) 1.90 0.31 0.87 (0.36) 0.16
- ---------------------------------------------------------------------------------
Total income (loss) from
investment operations 1.99 0.42 0.97 (0.24) 0.21
- ---------------------------------------------------------------------------------
Distributions to share-
holders from:
Net investment income (0.16) (0.08) (0.22) (0.05) --
Net realized gain (0.57) (0.45) -- (0.04) --
- ---------------------------------------------------------------------------------
Total distributions to
shareholders (0.73) (0.53) (0.22) (0.09) --
- ---------------------------------------------------------------------------------
Net increase (decrease) 1.26 (0.11) 0.75 (0.33) 0.21
- ---------------------------------------------------------------------------------
Net asset value, end of
year $ 11.78 $ 10.52 $ 10.63 $ 9.88 $ 10.21
- ---------------------------------------------------------------------------------
Total return (c) 20.44% 4.21% 9.96% (2.32)% 2.11%
Ratio to average net as-
sets of (d):
Expenses, net of waiv-
ers and reimbursements 1.06% 1.06% 1.06% 1.06% 1.04%
Expenses, before waiv-
ers and reimbursements 1.31% 1.37% 1.43% 1.38% 1.47%
Net investment income,
net of waivers and re-
imbursements 0.89% 0.97% 0.73% 1.22% 0.76%
Net investment income,
before waivers and re-
imbursements 0.64% 0.66% 0.36% 0.90% 0.33%
Portfolio turnover rate 160.13% 154.62% 202.47% 215.31% 77.79%
Net assets at end of
year (in thousands) $111.594 $106,774 $138,182 $148,704 $133,212
- ---------------------------------------------------------------------------------
<CAPTION>
Class D
-------------------------------------------------------
1998 1997 1996 1995 1994(b)
- ---------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, begin-
ning of year $ 10.39 $ 10.54 $ 9.83 $ 10.21 $ 10.47
Income (loss) from in-
vestment operations:
Net investment income 0.09 0.09 0.01 0.19 --
Net realized and
unrealized gain (loss) 1.83 0.29 0.92 (0.48) (0.26)
- ---------------------------------------------------------------------------------
Total income (loss) from
investment operations 1.92 0.38 0.93 (0.29) (0.26)
- ---------------------------------------------------------------------------------
Distributions to share-
holders from:
Net investment income (0.14) (0.08) (0.22) (0.05) --
Net realized gain (0.57) (0.45) -- (0.04) --
- ---------------------------------------------------------------------------------
Total distributions to
shareholders (0.71) (0.53) (0.22) (0.09) --
- ---------------------------------------------------------------------------------
Net increase (decrease) 1.21 (0.15) 0.71 (0.38) (0.26)
- ---------------------------------------------------------------------------------
Net asset value, end of
year $ 11.60 $ 10.39 $ 10.54 $ 9.83 $ 10.21
- ---------------------------------------------------------------------------------
Total return (c) 19.91% 3.79% 9.59% (2.78)% (2.56)%
Ratio to average net as-
sets of (d):
Expenses, net of waiv-
ers and reimbursements 1.45% 1.45% 1.45% 1.45% 1.35%
Expenses, before waiv-
ers and reimbursements 1.70% 1.76% 1.82% 1.77% 1.78%
Net investment income,
net of waivers and re-
imbursements 0.59% 0.58% 0.44% 2.01% --
Net investment income
(loss), before waivers
and reimbursements 0.34% 0.27% 0.07% 1.69% (0.43)%
Portfolio turnover rate 160.13% 154.62% 202.47% 215.31% 77.79%
Net assets at end of
year (in thousands) $ 203 $ 234 $ 94 $ 20 $ --
- ---------------------------------------------------------------------------------
</TABLE>
(a) For the period March 28, 1994 (commencement of operations) through
November 30, 1994.
(b) For the period November 16, 1994 (Class D shares issue date) through
November 30, 1994.
(c) Assumes investment at net asset value at the beginning of the year,
reinvestment of all dividends and distributions, and a complete redemption
of the investment at the net asset value at the end of the year. Total
return is not annualized for periods less than one year.
(d) Annualized for periods less than a full year.
See accompanying notes to financial statements.
101
<PAGE>
Northern Institutional Funds
Equity Portfolios
- -------------------------------------------------------------------------------
Financial Highlights
For the Years Ended November 30,
Small Company Index Portfolio
<TABLE>
<CAPTION>
Class A
-----------------------------------------------
1998 1997 1996 1995 1994
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of
year $ 15.05 $ 13.97 $ 12.98 $ 10.86 $ 11.29
Income (loss) from investment
operations:
Net investment income 0.13 0.15 0.19 0.16 0.14
Net realized and unrealized
gain (loss) (1.13) 2.69 1.75 2.67 (0.30)
- --------------------------------------------------------------------------------
Total income (loss) from
investment operations (1.00) 2.84 1.94 2.83 (0.16)
- --------------------------------------------------------------------------------
Distributions to shareholders
from:
Net investment income (0.14) (0.17) (0.14) (0.15) (0.02)
Net realized gain (0.89) (1.59) (0.81) (0.56) (0.25)
- --------------------------------------------------------------------------------
Total distributions to
shareholders (1.03) (1.76) (0.95) (0.71) (0.27)
- --------------------------------------------------------------------------------
Net increase (decrease) (2.03) 1.08 0.99 2.12 (0.43)
- --------------------------------------------------------------------------------
Net asset value, end of year $ 13.02 $ 15.05 $ 13.97 $ 12.98 $ 10.86
- --------------------------------------------------------------------------------
Total return (c) (7.02)% 23.06% 15.96% 27.76% (1.54)%
Ratio to average net assets
of (d):
Expenses, net of waivers and
reimbursements 0.31% 0.32% 0.32% 0.32% 0.33%
Expenses, before waivers and
reimbursements 0.74% 0.68% 0.79% 0.81% 0.86%
Net investment income, net
of waivers and
reimbursements 1.19% 1.22% 1.36% 1.31% 1.27%
Net investment income,
before waivers and
reimbursements 0.76% 0.86% 0.89% 0.82% 0.74%
Portfolio turnover rate 59.21% 42.66% 46.26% 38.46% 98.43%
Net assets at end of year (in
thousands) $139,100 $147,887 $112,856 $94,899 $77,120
- --------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Class C Class D
-------- ---------------------------------
1998 (a) 1998 1997 1996 1995 (b)
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year $13.89 $15.01 $13.96 $12.95 $10.51
Income from investment operations:
Net investment income 0.03 0.11 0.17 0.13 0.18
Net realized and unrealized gain
(loss) (0.94) (1.19) 2.62 1.83 2.96
- -------------------------------------------------------------------------------
Total income (loss) from
investment operations (0.91) (1.08) 2.79 1.96 3.14
- -------------------------------------------------------------------------------
Distributions to shareholders
from:
Net investment income -- (0.10) (0.15) (0.14) (0.14)
Net realized gain -- (0.89) (1.59) (0.81) (0.56)
- -------------------------------------------------------------------------------
Total distributions to
shareholders -- (0.99) (1.74) (0.95) (0.70)
- -------------------------------------------------------------------------------
Net increase (decrease) (0.91) (2.07) 1.05 1.01 2.44
- -------------------------------------------------------------------------------
Net asset value, end of year $12.98 $12.94 $15.01 $13.96 $12.95
- -------------------------------------------------------------------------------
Total return (c) (6.54)% (7.58)% 22.68% 16.20% 31.62%
Ratio to average net assets of
(d):
Expenses, net of waivers and
reimbursements 0.55% 0.70% 0.71% 0.71% 0.71%
Expenses, before waivers and
reimbursements 0.98% 1.13% 1.07% 1.18% 1.20%
Net investment income, net of
waivers and reimbursements 0.98% 0.80% 0.76% 1.02% 0.90%
Net investment income, before
waivers and reimbursements 0.55% 0.37% 0.40% 0.55% 0.41%
Portfolio turnover rate 59.21% 59.21% 42.66% 46.26% 38.46%
Net assets at end of year (in
thousands) $ 870 $ 855 $ 690 $ 269 $ 44
- -------------------------------------------------------------------------------
</TABLE>
(a) For the period January 8, 1998 (Class C shares issue date) through
November 30, 1998.
(b) For the period December 8, 1994 (Class D shares issue date) through
November 30, 1995.
(c) Assumes investment at net asset value at the beginning of the year,
reinvestment of all dividends and distributions, and a complete redemption
of the investment at the net asset value at the end of the year. Total
return is not annualized for periods less than one year.
(d) Annualized for periods less than a full year.
See accompanying notes to financial statements.
102
<PAGE>
Northern Institutional Funds
Fixed Income and Equity Portfolios
- -------------------------------------------------------------------------------
Notes to Financial Statements
November 30, 1998
1. Organization
Northern Institutional Funds (the "Trust") is a Delaware business trust which
was formed on July 1, 1997, and is registered under the Investment Company Act
of 1940 (as amended) as an open-end management investment company. The Trust,
formerly known as The Benchmark Funds, changed its name effective July 15,
1998. The Trust includes seventeen portfolios, each with its own investment
objective. Prior to March 31, 1998, each portfolio was a series of The
Benchmark Funds, a Massachusetts business trust, which reorganized into the
Trust at the close of business on that date. Each portfolio, other than the
International Bond Portfolio, is classified as a diversified investment
company. Except as noted below, the Northern Trust Company ("Northern") is the
investment adviser for all actively managed portfolios and is the custodian
and transfer agent for the Trust. Effective April 1, 1998, Northern Trust
Quantitative Advisors, Inc. ("NTQA"), a wholly-owned subsidiary of Northern
Trust Corporation, became the investment adviser for the U.S. Treasury Index,
Equity Index, International Equity Index and Small Company Index Portfolios.
Goldman, Sachs & Co. ("Goldman Sachs") acts as the Trust's administrator and
distributor. Presented herein are the financial statements of the fixed income
and equity portfolios (the "Portfolios").
Each of the Portfolios has four separate classes: Class A, B, C and D. Each
class is distinguished by the level of administrative support and transfer
agent service provided. As of November 30, 1998, Class A, Class C and Class D
shares are outstanding for certain Portfolios.
2. Significant Accounting Policies
The following is a summary of significant accounting policies consistently
followed by the Portfolios in the preparation of their financial statements.
These policies are in conformity with generally accepted accounting principles
("GAAP"). The presentation of financial statements in conformity with GAAP
requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates.
(a) Investment Valuation
Investments held by a Portfolio are valued at the last quoted sale price on
the exchange on which such securities are primarily traded, or if any
securities are not traded on a valuation date, at the last quoted bid price.
Securities which are traded in the over-the-counter markets are valued at the
last quoted bid price. Exchange traded futures and options are valued at the
settlement price as established by the exchange on which they are traded.
Index futures are marked to market on a daily basis. Any securities, including
restricted securities, for which current quotations are not readily available
are valued at fair value as determined in good faith by Northern under the
supervision of the Board of Trustees ("the Board"). Short-term investments are
valued at amortized cost which Northern has determined, pursuant to Board
authorization, approximates market value.
(b) Investment Transactions and Investment Income
Investment transactions are recorded as of the trade date. Realized gains and
losses on investment transactions are calculated on the identified-cost basis.
Interest income is recorded on the accrual basis and includes amortization of
discounts and premiums. The interest rates reflected in the Statements of
Investments represent either the stated coupon rate, annualized yield on date
of purchase for discount notes, the current reset rate for floating rate
securities or, for interest only or principal only securities, the current
effective yield. Dividend income is recorded on the ex-dividend date.
Dividends from foreign securities are recorded on the ex-date, or as soon as
the information is available.
(c) Deferred Organization Costs
Organization-related costs are being amortized on a straight-line basis over
five years.
(d) Expenses
Expenses arising in connection with a specific Portfolio are allocated to that
Portfolio. Certain expenses arising in connection with a class of shares are
allocated to that class of shares. Expenses incurred which do not specifically
relate to an individual Portfolio are allocated among the Portfolios based on
each Portfolio's relative net assets.
(e) Repurchase Agreements
During the term of a repurchase agreement, the market value of the underlying
collateral, including accrued interest, is required to exceed the market value
of the repurchase agreement. The underlying collateral for all repurchase
agreements is held in a customer-only account of Northern, as custodian for
the Trust, at the Federal Reserve Bank of Chicago.
103
<PAGE>
Northern Institutional Funds
Fixed Income and Equity Portfolios
- -------------------------------------------------------------------------------
Notes to Financial Statements
November 30, 1998
(f) Futures Contracts
Each Portfolio may invest in long or short futures contracts for hedging
purposes, to increase total return (i.e., for speculative purposes) or to
maintain liquidity. The Portfolios bear the market risk arising from changes
in the value of these financial instruments. At the time a Portfolio enters
into a futures contract it is required to make a margin deposit with the
custodian of a specified amount of liquid assets. Subsequently, as the market
price of the futures contract fluctuates, gains or losses are recorded and
payments are made, on a daily basis, between the Portfolio and the broker. The
Statements of Operations reflect gains and losses as realized for closed
futures contracts and as unrealized for open futures contracts.
At November 30, 1998, the Diversified Growth, Equity Index and Small Company
Index Portfolios had entered into long exchange traded futures contracts. The
aggregate market value of assets pledged to cover margin requirements for open
positions at November 30, 1998 was approximately $362,000, $1,691,000 and
$337,000 for the Diversified Growth, Equity Index and Small Company Index
Portfolios, respectively.
(g) Options Contracts
Each Portfolio may purchase and write (sell) put and call options on foreign
and domestic stock indices, foreign currencies, and U.S. and foreign
securities that are traded on U.S. and foreign securities exchanges and over-
the-counter markets. These transactions are for hedging (or cross-hedging)
purposes or for the purposes of earning additional income.
The risk associated with purchasing an option is that the Portfolio pays a
premium whether or not the option is exercised. Additionally, the Portfolio
bears the risk of loss of premium and change in market value should the
counterparty not perform under the contract. Put and call options purchased
are accounted for in the same manner as Portfolio securities.
The cost of securities acquired through the exercise of call options is
increased by the premiums paid. The proceeds from securities sold through the
exercise of put options are decreased by the premiums paid.
In writing an option, the Portfolio bears the market risk of an unfavorable
change in the price of the security or currency underlying the written option.
Exercise of an option written by the Portfolio could result in the Portfolio
selling or buying a security or currency at a price different from the current
market value.
The Portfolios did not write call or put options during the year ended
November 30, 1998.
(h) Stripped Securities
Stripped securities represent the right to receive future interest payments
(interest only stripped securities) or principal payments (principal only
stripped securities). The value of variable rate interest only stripped
securities varies directly with changes in interest rates, while the value of
fixed rate interest only securities and the value of principal only stripped
securities vary inversely with changes in interest rates.
(i) Forward Foreign Currency Exchange Contracts
Certain Portfolios are authorized to enter into forward foreign currency
exchange contracts for the purchase of a specific foreign currency at a fixed
price on a future date as a hedge or cross-hedge against either specific
transactions or portfolio positions. In addition, the International Bond and
International Growth Portfolios may enter into foreign currency exchange
contracts for speculative purposes. The objective of a Portfolio's foreign
currency hedging transactions is to reduce the risk that the U.S. dollar value
of the Portfolio's foreign currency denominated securities will decline in
value due to changes in foreign currency exchange rates. All forward foreign
currency contracts are "marked-to-market" daily at the applicable exchange
rates and any resulting unrealized gains or losses are recorded in the
financial statements. The Portfolio records realized gains or losses when the
forward contract is offset by entry into a closing transaction or extinguished
by delivery of the currency. Risks may arise upon entering into these
contracts from the potential inability of counterparties to meet the terms of
their contracts and from unanticipated movements in the value of a foreign
currency relative to the U.S. dollar.
The contractual amounts of forward foreign currency exchange contracts do not
necessarily represent the amounts potentially subject to risk. The measurement
of the risks associated with these instruments is meaningful only when all
related and offsetting transactions are considered.
At November 30, 1998, there were no outstanding forward foreign currency
exchange contracts.
(j) Foreign Currency Translations
Values of investments denominated in foreign currencies are converted into
U.S. dollars using the spot market rate of exchange at the time of valuation.
Cost of purchases and proceeds from sales of investments, interest and
dividend
104
<PAGE>
- -------------------------------------------------------------------------------
income are translated into U.S. dollars using the spot market rate of exchange
prevailing on the respective dates of such transactions.
The gains or losses on investments resulting from changes in foreign exchange
rates are included with net realized and unrealized gain (loss) on
investments.
(k) Federal Taxes
It is each Portfolio's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute,
each year, substantially all of its taxable income and capital gains to its
shareholders. Therefore, no provision is made for federal taxes.
At November 30, 1998, the Portfolios had approximately the following amount
of capital loss carryforwards for U.S. federal income tax purposes:
<TABLE>
<CAPTION>
Amount Year(s) of Expiration
- ---------------------------------------------------------
(in thousands)
<S> <C> <C>
U.S. Treasury Index $323 2002 to 2005
- ---------------------------------------------------------
</TABLE>
This amount is available to be carried forward to offset future capital gains
to the extent permitted by applicable laws or regulations.
(l) Distributions
Dividends from net investment income are declared and paid as follows:
<TABLE>
- -------------------------------------
<S> <C>
Bond Monthly
Intermediate Bond Monthly
International Bond Quarterly
Short-Intermediate Bond Monthly
U.S. Government Securities Monthly
U.S. Treasury Index Monthly
Balanced Quarterly
Diversified Growth Annually
Equity Index Quarterly
Focused Growth Annually
International Equity Index Annually
International Growth Annually
Small Company Index Annually
- -------------------------------------
</TABLE>
Each Portfolio's net realized capital gains are distributed at least
annually. Income dividends and capital gain distributions are determined in
accordance with income tax regulations. Such amounts may differ from income
and capital gains recorded in accordance with generally accepted accounting
principles.
3. Advisory, Transfer Agency and Custodian Agreements
The Trust has an investment advisory agreement whereby each Portfolio pays
Northern or NTQA, as the case may be, a fee, computed daily and payable
monthly, based on a specified percentage of its average daily net assets. For
the current period, Northern and NTQA each voluntarily agreed to waive a
portion of the advisory fees as shown on the accompanying Statements of
Operations. The annual advisory fees and waiver rates expressed as a
percentage of average daily net assets for the year ended November 30, 1998,
are as follows:
<TABLE>
<CAPTION>
Net
Advisory Less: Advisory
Fee Waiver Fee
- ----------------------------------------------------
<S> <C> <C> <C>
Bond .60% .35% .25%
Intermediate Bond .60 .35 .25
International Bond .90 .20 .70
Short-Intermediate Bond .60 .35 .25
U.S. Government Securities .60 .35 .25
U.S. Treasury Index .40 .25 .15
Balanced .80 .30 .50
Diversified Growth .80 .25 .55
Equity Index .30 .20 .10
Focused Growth 1.10 .30 .80
International Equity Index .50 .25 .25
International Growth 1.00 .20 .80
Small Company Index .40 .20 .20
- ----------------------------------------------------
</TABLE>
As compensation for the services rendered as transfer agent, including the
assumption by Northern of the expenses related thereto, Northern receives a
fee, computed daily and payable monthly, at an annual rate of .01%, .05%, .10%
and .15% of the average daily net asset value of the outstanding Class A, B, C
and D shares, respectively, for the Portfolios.
4. Administration and Distribution Agreements
The Trust has an administration agreement with Goldman Sachs whereby each
Portfolio pays the administrator a fee, computed daily and payable monthly, at
an annual rate of .10% of the Portfolio's average daily net assets, except the
International Bond, International Equity Index and International Growth
Portfolios which pay the administrator a fee, computed daily and payable
monthly, at an annual rate of .15% of their respective average daily net
assets.
In addition, if in any fiscal year the sum of a Portfolio's expenses,
including the administration fee, but excluding the fees payable to Northern
for its duties as investment
105
<PAGE>
Northern Institutional Funds
Fixed Income and Equity Portfolios
- -------------------------------------------------------------------------------
Notes to Financial Statements
November 30, 1998
adviser and Transfer agent, shareholder servicing fees and extraordinary
expenses (such as taxes, interest and indemnification expenses), exceeds on an
annualized basis .10% of a Portfolio's average daily net assets (0.25% for the
International Bond, International Growth and International Equity Index
Portfolios), Goldman Sachs will reimburse each Portfolio for the amount of the
excess pursuant to the terms of the administration agreement.
The expenses reimbursed during the year ended November 30, 1998, under such
arrangements, are shown on the accompanying Statements of Operations. No
administration fees were waived under this agreement during the year ended
November 30, 1998.
Goldman Sachs receives no compensation under the distribution agreement.
5. Shareholder Servicing Plan
The Trust has adopted a Shareholder Servicing Plan pursuant to which the Trust
may enter into agreements with institutions or other financial intermediaries
under which they will render certain shareholder administrative support
services for their customers or other investors who beneficially own Class B,
C and D shares. As compensation under the Shareholder Servicing Plan, the
institution or other financial intermediary receives a fee at an annual rate
of up to .10%, .15% and .25% of the average daily net asset value of the
outstanding Class B, C and D shares, respectively.
6. Investment Transactions
Investment transactions for the year ended November 30, 1998 (excluding short-
term investments) were as follows:
<TABLE>
<CAPTION>
Proceeds
from sales Proceeds
and from
Purchases maturities sales and
of U.S. Purchases of U.S. maturities
Government of other Government of other
Obligations securities Obligations securities
- -------------------------------------------------------------------------
(in thousands)
<S> <C> <C> <C> <C>
Bond $374,882 $205,475 $344,907 $117,007
Intermediate Bond 24,234 10,004 15,220 2,456
International Bond -- 6,730 -- 6,007
Short-Intermediate Bond 111,674 61,032 152,920 31,131
U.S. Government Securities 57,557 -- 53,320 --
U.S. Treasury Index 17,445 -- 29,538 --
Balanced 16,967 21,228 13,721 22,923
Diversified Growth -- 60,615 -- 76,974
Equity Index -- 321,263 -- 170,092
Focused Growth -- 102,129 -- 119,229
International Equity Index -- 26,187 -- 18,914
International Growth -- 161,519 -- 173,754
Small Company Index -- 72,775 -- 84,983
- -------------------------------------------------------------------------
</TABLE>
As of November 30, 1998, the composition of unrealized appreciation
(depreciation) of investment securities (including the effects of foreign
currency translation and excluding futures transactions) based on the
aggregate cost of investments for federal income tax purposes were as follows:
<TABLE>
<CAPTION>
Cost for
Federal
Net Income
Appreciation Tax
Appreciation Depreciation (Depreciation) Purposes
- -----------------------------------------------------------------------------
(in thousands)
<S> <C> <C> <C> <C>
Bond $ 19,048 $10,217 $ 8,831 $650,582
Intermediate Bond 268 414 (146) 31,483
International Bond 1,889 743 1,146 26,708
Short-Intermediate Bond 2,353 8,374 (6,021) 187,635
U.S. Government Securities 585 510 75 53,827
U.S. Treasury Index 1,410 27 1,383 22,430
Balanced 14,668 568 14,100 53,632
Diversified Growth 68,475 1,013 67,462 111,672
Equity Index 477,382 31,820 445,562 921,133
Focused Growth 42,530 764 41,766 92,059
International Equity Index 6,431 4,195 2,236 42,490
International Growth 14,504 2,047 12,457 97,267
Small Company Index 16,241 19,261 (3,020) 141,589
- -----------------------------------------------------------------------------
</TABLE>
106
<PAGE>
- -------------------------------------------------------------------------------
7. Bank Loans
Prior to January 16, 1998, the Trust maintained a $5,000,000 revolving bank
credit line and a $15,000,000 conditional revolving credit line for liquidity
and other purposes. As of January 16, 1998, the Trust maintains a $100,000,000
revolving bank credit line and a $15,000,000 conditional revolving credit line
for liquidity and other purposes. Borrowings under this arrangement bear
interest at 1% above the federal funds rate and are secured by pledged
securities equal to or exceeding 120% of the outstanding balance.
Interest expense for the year ended November 30, 1998 was approximately
$3,000, $27,000, $18,000, $16,000 and $6,000 for the Diversified Growth,
Equity Index, Focused Growth, International Equity Index and Small Company
Index Portfolios, respectively. These amounts are included in "Other Expenses"
on the Statements of Operations.
As of November 30, 1998, the Focused Growth Portfolio had approximately
$700,000 of outstanding borrowings which is included in "Other Liabilities" on
the Statements of Assets and Liabilities. The interest rate in effect at
November 30, 1998, was 5.875%, (current NIBOR rate plus 0.375%).
8. Share Transactions
Transactions in Class A shares for the year ended November 30, 1998 were as
follows:
<TABLE>
<CAPTION>
Net
Reinvested increase
Sales distributions Redemptions (decrease)
- -----------------------------------------------------------------------
(in thousands)
<S> <C> <C> <C> <C>
Bond 10,138 1,515 5,483 6,170
Intermediate Bond 1,392 67 551 908
International Bond 108 60 140 28
Short-Intermediate Bond 6,204 738 7,697 (755)
U.S. Government Securities 632 116 518 230
U.S. Treasury Index 724 21 1,357 (612)
Balanced 1,380 239 1,260 359
Diversified Growth 812 1,322 1,887 247
Equity Index 24,202 3,689 18,131 9,760
Focused Growth 1,385 1,532 2,536 381
International Equity Index 1,984 63 1,540 507
International Growth 892 644 2,220 (684)
Small Company Index 7,425 673 7,245 853
- -----------------------------------------------------------------------
</TABLE>
Transactions in Class A shares for the year ended November 30, 1997 were as
follows:
<TABLE>
<CAPTION>
Net
Reinvested increase
Sales distributions Redemptions (decrease)
- -----------------------------------------------------------------------
(in thousands)
<S> <C> <C> <C> <C>
Bond 7,554 1,111 4,475 4,190
Intermediate Bond 594 9 -- 603
International Bond 56 74 363 (233)
Short-Intermediate Bond 5,953 572 4,056 2,469
U.S. Government Securities 3,473 227 6,148 (2,448)
U.S. Treasury Index 1,031 59 740 350
Balanced 609 205 717 97
Diversified Growth 939 1,144 2,201 (118)
Equity Index 18,925 2,547 19,705 1,767
Focused Growth 1,481 905 2,575 (189)
International Equity Index 3,356 -- 111 3,245
International Growth 1,116 606 4,566 (2,844)
Small Company Index 3,221 1,087 2,562 1,746
- -----------------------------------------------------------------------
</TABLE>
Transactions in Class C shares for the year ended November 30, 1998 were as
follows:
<TABLE>
<CAPTION>
Net
Reinvestment increase
Sales distributions Redemptions (decrease)
- ----------------------------------------------------------------------
(in thousands)
<S> <C> <C> <C> <C>
Bond 1,409 192 1,156 445
U.S. Government Securities 84 9 54 39
U.S. Treasury Index 8 -- 7 1
Balanced 104 21 97 28
Equity Index 2,131 373 1,696 808
Focused Growth 12 115 109 18
Small Company Index 153 -- 86 67
- ----------------------------------------------------------------------
</TABLE>
107
<PAGE>
Northern Institutional Funds
Fixed Income and Equity Portfolios
- -------------------------------------------------------------------------------
Notes to Financial Statements
November 30, 1998
Transactions in Class C shares for the year ended November 30, 1997 were as
follows:
<TABLE>
<CAPTION>
Net
Reinvested increase
Sales distributions Redemptions (decrease)
- ----------------------------------------------------------------------
(in thousands)
<S> <C> <C> <C> <C>
Bond 2,988 104 1,045 2,047
U.S. Government Securities 67 10 97 (20)
Balanced 89 25 266 (152)
Equity Index 2,220 226 1,520 926
Focused Growth 12 65 45 32
- ----------------------------------------------------------------------
</TABLE>
Transactions in Class D shares for the year ended November 30, 1998 were as
follows:
<TABLE>
<CAPTION>
Net
Reinvested increase
Sales distributions Redemptions (decrease)
- ----------------------------------------------------------------------
(in thousands)
<S> <C> <C> <C> <C>
Bond 118 5 58 65
Intermediate Bond 2 -- -- 2
International Bond 3 -- 2 1
Short-Intermediate Bond 22 4 29 (3)
U.S. Government Securities 51 1 8 44
U.S. Treasury Index 21 3 27 (3)
Balanced 45 3 21 27
Diversified Growth 32 8 20 20
Equity Index 513 137 778 (128)
Focused Growth 52 21 38 35
International Equity Index 1 -- -- 1
International Growth 15 1 22 (6)
Small Company Index 38 3 21 20
- ----------------------------------------------------------------------
</TABLE>
Transactions in Class D shares for the year ended November 30, 1997 were as
follows:
<TABLE>
<CAPTION>
Net
Reinvested increase
Sales distributions Redemptions (decrease)
- ----------------------------------------------------------------------
(in thousands)
<S> <C> <C> <C> <C>
Bond 32 1 15 18
International Bond 3 -- -- 3
Short-Intermediate Bond 31 1 5 27
U.S. Government Securities 6 -- 1 5
U.S. Treasury Index 55 2 16 41
Balanced 12 1 8 5
Diversified Growth 16 4 6 14
Equity Index 1,302 34 281 1,055
Focused Growth 32 6 9 29
International Growth 19 -- 5 14
Small Company
Index 43 1 17 27
- ----------------------------------------------------------------------
</TABLE>
9. Subsequent Event
On January 1, 1999, eleven European countries converted to a common currency
referred to as the "Euro". Hereinafter, investments traded in the markets of
these countries (Austria, Belgium, Finland, France, Germany, Ireland, Italy,
Luxembourg, Netherlands, Portugal, and Spain) will be denominated in Euro.
Accordingly, the portfolio holdings of the International Bond, International
Equity and International Growth Portfolios denominated in these countries'
functional currency were converted.
108
<PAGE>
Northern Institutional Funds
Fixed Income and Equity Portfolios
- -------------------------------------------------------------------------------
Report of Independent Auditors
To the Shareholders and Trustees of
Northern Institutional Funds
Fixed Income and Equity Portfolios
We have audited the accompanying statements of assets and liabilities,
including the statements of investments, of the Bond, Intermediate Bond,
International Bond, Short-Intermediate Bond, U.S. Government Securities, U.S.
Treasury Index, Balanced, Diversified Growth, Equity Index, Focused Growth,
International Equity Index, International Growth and Small Company Index
Portfolios, comprising the Fixed Income and Equity Portfolios of the Northern
Institutional Funds, as of November 30, 1998, and the related statements of
operations, changes in net assets and financial highlights for the periods
indicated therein. These financial statements and financial highlights are the
responsibility of the Portfolios' management. Our responsibility is to express
an opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements. Our procedures included verification of the
investments owned at November 30, 1998 by physical examination of the
securities held by the custodian and by correspondence with central
depositories, unaffiliated subcustodian banks and brokers. An audit also
includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of the
Bond, Intermediate Bond, International Bond, Short-Intermediate Bond, U.S.
Government Securities, U.S. Treasury Index, Balanced, Diversified Growth,
Equity Index, Focused Growth, International Equity Index, International Growth
and Small Company Index Portfolios, comprising the Fixed Income and Equity
Portfolios of the Northern Institutional Funds, at November 30, 1998, the
results of their operations, the changes in their net assets and financial
highlights for the periods indicated therein, in conformity with generally
accepted accounting principles.
/s/ Ernst & Young LLP
Chicago, Illinois
January 15, 1999
109
<PAGE>
Investment Advisers
The Northern Trust Company
Northern Trust Quantitative Advisors, Inc.
50 South LaSalle Street
Chicago, Illinois 60675
Transfer Agent and Custodian
The Northern Trust Company
Administrator and Distributor
Goldman, Sachs & Co.
4900 Sears Tower
Chicago, IL. 60606
Trustees
William H. Springer, Chairman
Richard Gordon Cline
Edward J. Condon, Jr.
John W. English
Sandra Polk Guthman
Frederick T. Kelsey
Richard P. Strubel
Officers
Frank J. Polefrone, President
James A. Fitzpatrick, Vice President
Gordon Linke, Vice President
Nancy L. Mucker, Vice President
John M. Perlowski, Treasurer
Michael J. Richman, Secretary
Deborah A. Farrell, Assistant Secretary
Steven Hartstein, Assistant Secretary
Howard B. Surloff, Assistant Secretary
Valerie A. Zondorak, Assistant Secretary
Independent Auditors
Ernst & Young LLP
233 S. Wacker Drive
Chicago IL. 60606
Legal Counsel
Drinker Biddle & Reath LLP
1345 Chestnut Street
Philadelphia, PA 19107
This Annual Report is authorized for distribution to prospective investors only
when proceeded or accompanied by a Prospectus which contains facts concerning
the objectives and policies management expenses and other information.
